Parkin IPO: Dubai company could raise up to $430 million in DFM listing

The final offer price is expected to be announced on March 14, with the entity planning to start trading a week later

Parkin is the largest provider of paid parking spaces and services in Dubai. Sarah Dea/The National

Parkin, the company set up by Dubai to oversee parking operations, could raise as much as Dh1.57 billion ($428 million) from its initial public offering on the Dubai Financial Market.

The price range for the offering has been set between Dh2 and Dh2.10 per share, implying a market capitalisation at listing of between Dh6 billion to Dh6.30 billion, the company said on Tuesday.

The Dubai Investment Fund expects to sell 749.7 million ordinary shares, representing 24.99 per cent of the total issued share capital of the company.

The subscription period for retail investors runs from March 5 to March 12, while for institutional investors, it ends on March 13.

The final offer price is expected to be announced on March 14, with the company planning to start trading a week later, on March 21.

“As Dubai continues to grow, our company will grow with it. The IPO will enable us to build on and accelerate our success,” said Mohamed Al Ali, chief executive of Parkin.

The company has received “strong interest from investors following our intention to float on the DFM”, he said.

Parkin is the largest provider of paid parking spaces and services in Dubai, accounting for more than 90 per cent of the emirate's on and off-street paid parking market.

It operated about 175,000 on and off-street parking spaces across 85 locations, and close to 18,000 spaces across seven developer-owned parking lots as of the end of last year.

The company is also responsible for issuing permits to drivers, allowing them to subscribe to public parking, use and operate it, and reserve parking spaces.

It is also tasked with establishing, designing and managing private parking spaces, as well as investment in related business activities, among other responsibilities.

Parkin's revenue for the financial year ending December 31 climbed 13.5 per cent annually to Dh779.4 million.

The company's profits before interest, taxes, depreciation and amortisation rose by 23 per cent during the period to Dh414.4 million, according to the prospectus.

The company's IPO comes after Dubai announced plans in November 2021 to list 10 state-owned companies, aiming to expand the size of its financial market to Dh3 trillion.

It also established a Dh2 billion marketmaker fund to encourage listings from private companies in sectors such as energy, logistics, and retail.

Five state-owned enterprises have been listed on the DFM since 2022.

The listing of Dubai Electricity and Water Authority was the largest GCC IPO in 2022, raising $6.1 billion.