Parkin’s initial public offering (IPO) has hit the highest oversubscription level ever achieved on the Dubai Financial Market, the company said on Thursday. The IPO was oversubscribed by 165 times with record demand of Dh259 billion from investors.
Earlier this week, it announced an increase in the number of shares for retail investors. It increased ordinary shares by 12 per cent from 74,970,000 to 89,964,000 in the retail category. The qualified investor tranche was reduced to 659,736,000 shares instead of 674,730,000 earlier, representing 88 per cent of the offer shares, compared to the 90 per cent previously announced.
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Parkin set the price for its shares at Dh2.10, resulting in a market capitalisation at listing of Dh6.30 billion.
In total, the company raised Dh1.6 billion through the share sale.
Parkin will be the largest provider of paid parking facilities and services in Dubai and is the first company to launch an IPO in 2024 in the UAE. It currently operates approximately 197,000 paid parking spaces at strategic locations across the emirate.
The qualified investor tranche attracted more than Dh230 billion, implying an oversubscription of 166 times while the retail offering saw demand of Dh29 billion, an oversubscription of 153 times through almost 63,000 applications, a record for a DFM IPO.
“The IPO will enable us to build on and accelerate our success in providing seamless, sustainable, and innovative mobility solutions across the Emirate. We are proud to support Dubai’s privatization programme and the continued expansion of the Dubai Financial Market,” said Mohamed Al Ali, CEO of Parkin.
It is expected to commence trading on the Dubai bourse on March 21.