Parkin, the Dubai headquartered parking space operator, has announced it will offer a 24.99% stake in an initial public offering (IPO) in the Dubai Financial Market.
The company’s IPO will be the first to take place this year in the UAE. The offer price range will be announced on March 5. Subscriptions will start on that date and end on March 12 for the first tranche for retail investors and on March 13 for institutional investors.
“The sale of 749,700,000 ordinary shares with nominal value of AED 0.02, each representing 24.99% of the total issued shares in the company will be sold by the company’s sole shareholder, mainly, the Dubai Investment Fund,” the company said in a prospectus published in DFM.
As part of the offering, as much as 10% of the public float will be offered to retail investors, with a minimum subscription amount of Dh5,000. They will be guaranteed to receive a minimum of 2,000 shares apiece.
Meanwhile, 5% of the public offer price will be reserved for the Emirates Investment Authority and 5% for the Pensions and Social Security Fund of Local Military Personnel.
Parkin was established last month by the Dubai government to oversee parking operations across the city with financial, administrative, and legal autonomy, according to a new law.
The company accounts for more than 90% of Dubai’s on- and off-street paid parking spaces, accounting for 175,000 parking spaces across 85 locations in the city, an estimated 4,000 or so spaces at nine multi-storey car parks and about 18,000 spaces at seven developer-owned facilities.
Parkin is responsible for issuing permits for individuals to subscribe to public parking, operate it, and reserve spaces as per franchise contract terms. It also manages private parking spaces and engages in related business activities.
The company is the third entity to float and list on DFM from the RTA universe, after Salik and the more recent one from Dubai Taxi Co.
Parkin plans to list on March 21, with the final offer price being set on March 14. Last year, the entity recorded revenues of Dh779.4 million, a consistent growth from the Dh590.6 million it recorded in 2021 and the Dh686.2 million reached in 2022. Parkin’s 2023 net profit was Dh414.4 million.
