(MENAFN- Khaleej Times) Dubai-based company Parkin, which showed its intentions to launch an initial public offering (IPO) recently, looks set to float 24.99 per cent shares on the Dubai financial market next month, according to an ad prospectus issued by the company on Tuesday.
The parking space operator will be the first company to launch an IPO in 2024 in Dubai. It will start subscriptions on March 5 and will continue until March 12.
As per the prospectus, the offer price range will be made public on March 5, and retail investors will get an opportunity to buy 10 per cent of the stock float and be guaranteed to receive a minimum of 2,000 shares apiece. Emirates NBD Bank is the lead receiving bank of the IPO.
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"The minimum application size for the retail tranche is Dh5,000 and thereafter in increments of Dh1,000 apiece," according to the prospectus.
Atik Munshi, managing partner, FinExpertiza UAE, said Parkin IPO is expected to attract retail investors looking to capitalise on investment opportunities in the market.
"With the increase in permanent and floating populations, there is always a dearth of parking spaces in Dubai, particularly in the commercial and business areas. With the launch of Parkin's IPO, investors can get a slice of the lucrative market, which has even better potential in the future," Munshi told Khaleej Times on Tuesday.
Third RTA entity
Parkin, which closed 2023 with Dh779.4 million in revenues and Dh414.4 million net profit, will be the third entity of Dubai's Road and Transport Authority (RTA) after Salik and Dubai Taxi Company. It operates 175,000 parking spaces across 85 locations in the city, another 4,000 or so spaces at nine MSCPs (multi-storey car parks), and about 18,000 spaces at seven developer-owned facilities.
The entity oversees the RTA's car park and was incorporated as a public joint stock company in January. Under the law, Dubai's ownership of the company will not fall below 60 per cent when its shares are sold to the public.
The listing of the parking business follows the RTA's successful IPO of Dubai Taxi Company, which attracted $330 million in November. It was oversubscribed 130 times, covered with over $41 billion of demand from investors.
"Since Parkin is going to be the exclusive service provider to RTA, it will enjoy a unique status of near zero competition. This IPO is expected to be oversubscribed multiple times," Munshi said.
"Users can look forward to more technology-driven parking processes whereby hassle of parking is reduced since Parkin will now solely concentrate on improvement and enhancement of parking services," he said.
Last year, the RTA raised $1 billion and drew orders of $50 billion for a 24.9 percent stake in a public share sale of its toll-road business Salik.
Dubai raised nearly $8.5 billion from five IPOs last year, fuelled by a government privatisation plan to list 10 state-linked companies to boost stock market activity.
Companies in the region raised $21.9 billion through IPOs last year, more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.
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