Parkin Company announced today the final offer price for its initial public offering (IPO) at AED2.10 per share. The IPO is set to generate approximately AED1.57 billion ($428.69 million) in gross proceeds for Dubai Investment Fund, the selling shareholder. Parkin and Dubai Investment Fund also confirmed the previously announced offering size of 749,700,000 shares, equivalent to 24.99 percent of Parkin’s total issued share capital.
Record-breaking demand
Parkin’s IPO witnessed unprecedented investor interest, with total gross demand soaring to approximately AED259 billion ($71 billion) at the final offer price. This demand implies an oversubscription level of approximately 165 times for all tranches combined, setting a new record for oversubscription on the Dubai Financial Market (DFM).
The qualified investor tranche attracted exceptional global demand of more than AED230 billion, resulting in an oversubscription level of approximately 166 times at the final offer price. Meanwhile, the retail offering saw remarkable demand from local investors with around AED29 billion. This implies oversubscription levels of around 153 times. Almost 63,000 applications were received, a record for a DFM IPO.
The unprecedented investor demand is a testament to Parkin’s compelling investment proposition. Moreover, it reiterates the confidence in Dubai’s infrastructure and long-term growth prospects.
Commenting on this achievement, Mohamed Al Ali, CEO of Parkin, stated: “This resounding confidence in our attractive equity story is a testament to our best-in-class business model, strong financial performance, and the clear growth opportunities we see for Parkin.”
Read: DFM sets new record in 2023, crosses 4,000 points for first time in 8 years
Accelerating success
The IPO proceeds will enable Parkin to further accelerate its success in providing seamless, sustainable and innovative mobility solutions across Dubai. Al Ali emphasized the company’s commitment to supporting Dubai’s privatization program and the expansion of the DFM. He also extended a warm welcome to new investors, affirming Parkin’s dedication to delivering long-term value to all stakeholders.
Parkin will commence trading on the DFM on March 21, 2024, under the symbol “PARKIN” and ISIN AEE01370P249. At listing, the company will boast a market capitalization of AED6.30 billion, marking a significant milestone in its journey towards achieving its strategic objectives.
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