Parkin, the largest provider of paid parking facilities and services in Dubai, today announced the price range and start of the subscription period for its Initial Public Offering (IPO) on the Dubai Financial Market (DFM).
Mohamed Al Ali, CEO of Parkin, said,
"We provide critical infrastructure to the Emirate with a systemic role in enabling mobility to support the city's expansion plans. As Dubai continues to grow, our company will grow with it. The IPO will enable us to build on and accelerate our success, driving further innovation, delivering strong financial performance, and realising the potential of our growth platform to scale up and diversify."
The Offering's price range is set between AED2.00 and AED2.10 per share, with an estimated market capitalization at listing ranging from AED6.00 billion to AED6.30 billion (c. $1.63 billion to c. $1.72 billion). The Dubai Investment Fund plans to sell 24.99% of the Company's total issued share capital, and the Offering may be adjusted by the Fund before the subscription period ends. Assuming full sale, the Offering size is approximately AED1,499.40 million to AED1,574.37 million (c. $408.28 million to c. $428.69 million), with the final offer price to be announced on March 14, 2024.
All shares are held by the Dubai Investment Fund, and the Company won't receive any proceeds. After the Offering, the Selling Shareholder will retain a 75.01% stake. The Offering includes a UAE Retail Offering and a Qualified Investor Offering. Five percent of the Offering is reserved for the Emirates Investment Authority, and another five percent for the Pensions and Social Security Fund of Local Military Personnel.
Subscription periods are from March 5 to March 12 for the UAE Retail Offering and March 5 to March 13 for the Qualified Investor Offering. The Offer Price will be determined through a book-building process, with Rothschild & Co Middle East Limited as the Independent Financial Advisor, and Emirates NBD Capital, Goldman Sachs International, and HSBC Bank Middle East Limited as Joint Global Coordinators and Joint Bookrunners.
The Offering is expected to be completed and admitted to trading in March 2024, subject to market conditions and regulatory approvals. The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has confirmed the Offering's Shariah compliance, but investors are advised to conduct their due diligence.
News Source: Emirates News Agency
