Parkin, the company appointed up by Dubai to administer parking operations, will offer a 24.99% in an Initial Public Offering as the emirate continues efforts to boost its capital markets. Established as a public joint stock company under a new law in January, Parkin will offer 749.7 million shares in the public float on the Dubai Financial Market, according to a prospectus issued by the company on Tuesday.
Subscriptions start from March 5 until March 12 for the first tranche for retail investors and end on March 13 for institutional investors. Up to 10 per cent of the public float will be offered to retail investors, with a minimum subscription amount of Dh5,000 ($1,360).
As part of the qualified investor offering, 5 per cent will be reserved for the Emirates Investment Authority and 5 per cent for the Pensions and Social Security Fund of Local Military Personnel. The price range for the deal will be announced on March 5 and the final offer price will be set on March 14. The company plans to list on March 21.
Parkin
Parkin is the largest provider of paid parking spaces and services in Dubai, accounting for more than 90% of the emirate’s on and off-street paid parking market, according to the prospectus. It operated about 175,000 on and off-street parking spaces across 85 locations, in addition to another 4,000 or so spaces at multi-storey car parks and close to 18,000 spaces across seven developer-owned parking lots as of the end of last year. The entity is also responsible for issuing permits to drivers, enabling them to subscribe to public parking, use and operate it, and to 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 earnings before interest, taxes, depreciation, and amortization rose by 23 per cent during the period to Dh414.4 million, according to the prospectus.
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The RTA is monetizing assets on behalf of the Dubai government as part of a wider privatization program to list state-linked companies to boost attention to its exchange.
Dubai announced plans in November 2021 to list 10 state-owned companies to increase the size of its financial market to Dh3 trillion, as well as set up a Dh2 billion market-maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.
