Dubai’s largest parking provider, Parkin Company PJSC, announced Tuesday its intention to list on the Dubai Financial Market (DFM).
The initial public offering (IPO) will see the company sell 24.99 percent of its shares.
The subscription period will open on Tuesday, March 5, 2024 and is expected to close on Tuesday, March 12, 2024 for UAE Retail Investors and on Wednesday, March 13 2024 for Qualified Investors, with shares to be admitted to trading on the DFM.
What is Dubai’s Parkin?
Parkin currently operates around 197,000 paid parking spaces across the emirate. This includes over 179,000 public parking spaces and around 18,000 spaces in private developer-owned lots.
The company holds a 49-year concession agreement with Dubai’s Roads and Transport Authority (RTA). This grants Parkin exclusive rights to operate all existing and future public parking facilities in the emirate.
“Guided by our visionary leadership, Dubai has become one of the world’s leading cities for business, lifestyle, and innovation. Parkin’s IPO will enable us to build on and accelerate our progress in supporting these ambitions, driving the Emirate’s future success. As Dubai’s population and economy continue to grow, our company will grow with it. As a result, I am confident in Parkin’s future opportunities, delivering on our vision to become one of the leading parking providers in the world,” Parkin Chairman Ahmed Hashem Bahrozyan said.
Dubai has ambitious plans to expand its population and economy over the coming decades.
The government targets growing the population by 60 percent and doubling GDP growth by 2033. This is expected to significantly increase demand for parking. The number of registered vehicles in the emirate is projected to rise four percent annually on average until 2033.
“With its systemic role in Dubai’s transport ecosystem, now and in the future, Parkin will operate at the centre of the city’s exciting and ambitious growth plans. Powered by market-leading technology with robust digital infrastructure and a highly experienced management team, we will continue to enhance and expand our ability to provide seamless, sustainable, and innovative mobility solutions and services to make every journey in Dubai a world-class experience for decades to come. As we begin this new chapter, we remain steadfast in our commitment to drive growth, delivering value to our stakeholders, and shaping the future of our industry,” Parkin CEO Mohamed Al Ali added.
Investors in the IPO will receive an expected first dividend payment in October 2024 for the first half of this year.
Parkin outlines plans to pay out a minimum of 100 percent of profits or free cash flow annually.
Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank, along with Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Al Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank PJSC, Mashreq Bank and Wio Bank have also been appointed as Receiving Banks.
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