Parkin, a parking management company in Dubai, said that it raised 1.57 billion dirhams ($427.5 million) from the initial public offering of its shares, after setting the final price of the offering at 2.1 dirhams per share, which is the upper limit of the previously announced price range.
The company, which will offer a stake of about 25 percent, stated that the demand for subscription exceeded the shares offered by about 165 times, as the company received applications worth an estimated value of about 259 billion dirhams from local, regional and international investors.
The company’s initial public offering is the first privatization process in the emirate this year, and the offering means that the total value of the company is estimated at about 6.3 billion dirhams.
Parkin announced in a statement that its shares are expected to begin trading on the local stock exchange on March 21.
Parkin had said at the beginning of March that it had set the price range for the planned initial public offering of its shares between two dirhams and 2.1 dirhams ($0.57) per share.
At the end of last year, Parkin was operating about 179,000 paid public parking spaces across Dubai, including about four thousand in multi-storey parking lots. The company stated that it manages parking spaces that can accommodate about 18,000 vehicles in facilities owned by developers.
Parkin announced revenues of 779 million dirhams in 2023, an increase of 14 percent over the previous year, while basic profits rose 23 percent to 414 million dirhams.
Reuters reported in June last year that the Roads and Transport Authority in the Emirate of Dubai was studying strategic options regarding the parking arm, and invited banks to submit their offers to play roles in a possible initial public offering.
The Roads and Transport Authority is liquidating assets on behalf of the Dubai government as part of a broader privatization program to list semi-governmental companies and enhance interest in the stock exchange, while the city continues to attract large numbers of wealthy people and is witnessing strong population growth.
The Roads and Transport Authority raised $1 billion from the sale of a 25 percent stake in the traffic toll company Salik in 2022, and another $315 million in December from the sale of a 24.99 percent stake in the Dubai Taxi Company.
The two deals attracted strong demand from investors, and subscription requests exceeded the offer several times.
2024-03-14 08:49:10
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