Parkin, the entity responsible for overseeing public parking operations across the Emirates, has successfully completed its initial public offering (IPO), securing 1.57 billion dirhams ($427.5 million) after setting the share price at 2.1 dirhams each, according to a recent announcement.
This pricing placed the shares at the upper limit of the anticipated range.
The offering saw Parkin releasing approximately 25% of its stake to the public, which attracted an overwhelming interest from investors.
The demand for Parkin’s shares was significant, with the offer being oversubscribed by about 165 times.
This indicates that investors were willing to invest a total of approximately 259 billion dirhams, drawing from a mix of local, regional, and international participants.
This IPO marks a significant milestone for Dubai, representing the first privatisation effort within the emirate for the year.
The successful pricing and subsequent oversubscription highlight the strong confidence investors have in Parkin, valuing the company at an impressive 6.3 billion dirhams.
The anticipation around this event is evident, as it demonstrates the attractiveness of Dubai’s market to a broad spectrum of investors, signaling robust interest and confidence in the emirate’s economic prospects and the company’s potential for growth and profitability.
Parkin has scheduled its debut on the local stock exchange for March 21, marking the beginning of a new chapter for the company in the public market.
This move not only reflects the company’s growth ambitions but also Dubai’s broader strategy to diversify its economy and provide more opportunities for investment within the emirate.
The success of Parkin’s IPO could potentially set a precedent for other public sector entities considering privatisation and listing in the future, further enriching the investment landscape in Dubai.