Parkin, the company responsible for managing parking operations in Dubai, has decided to increase the number of shares available to retail investors in its initial public offering (IPO) due to strong demand. In response to this demand, the retail tranche of the public offering has been raised from 74.97 million shares to 89.96 million shares, making up 12 percent of the total shares offered in the IPO. This increase is a result of the high level of oversubscription and demand from retail investors, according to Parkin.
Read more: Dubai’s Parkin to offer 24.99 percent stake in IPO
Despite the increase in the retail offering, the overall size of the public float remains unchanged at 749.7 million shares, which represents 24.99 percent of Parkin’s total issued share capital. To accommodate the expanded retail offering, the qualified investor tranche has been reduced to 659.73 million shares, constituting 88 percent of the total shares offered, down from the previously announced 90 percent.
The subscription period for qualified investors will close on Wednesday, while it has already closed for retail investors as of Tuesday, as stated by the company. Parkin’s shares are expected to commence trading on the Dubai Financial Market on March 21, using the symbol “PARKIN”.
Through its listing on the DFM, Parkin aims to raise up to AED1.57 billion ($428 million), contributing to the emirate’s efforts to diversify its capital markets. The price range for the offering has been set between AED2 and AED2.10 per share, implying a market capitalization at listing between AED6 billion and AED6.30 billion, as announced earlier this month by the company.
AED3 trillion financial market target
Parkin’s IPO follows Dubai’s announcement in November 2021 to list ten state-owned companies, aiming to expand the size of its financial market to AED3 trillion. Additionally, the emirate established a AED2 billion market-maker fund to encourage listings from private companies in sectors such as energy, logistics, and retail.
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