2024-03-14 08:08:19
Huge demand for Parkin’s $71 billion offering in Dubai
Dubai-based parking management company Parkin raised 1.57 billion dirhams (about $427.5 million) from the initial public offering of its shares after setting the final price of the offering at 2.1 dirhams per share, which is the upper limit of the previously announced price range.
The company, which will offer a stake amounting to about 25 percent, stated that the demand for subscription exceeded the shares offered by about 165 times, as the company received applications worth an estimated 259 billion dirhams (about 71 billion dollars) from local, regional and international investors, in a clear indication of the strong demand for… Initial offerings in the UAE.
The company’s initial public offering is the first privatization process in the emirate this year. The offering means that the total value of the company is estimated at about 6.3 billion dirhams (about 1.7 billion dollars), as the Dubai Investment Fund sold 749.7 million shares, or a 25 percent stake, in the public offering.
It is noteworthy that the initial public offering of Parkin is the sixth privatization undertaken by the Dubai government as part of a plan revealed at the end of 2021 to list 10 government-owned companies to enhance trading volumes on the Dubai Financial Market.
Parkin announced in a statement that its shares are expected to begin trading on the Dubai Financial Market on March 21.
Parkin is the latest Gulf listing to attract huge levels of demand as investors bet on lucrative dividends as well as the strong performance of new companies’ share prices.
Dubai’s latest IPO, the $315 million IPO of taxi business Dubai Taxi, received orders worth $41 billion.
In a related context, Parkin expects demand for public parking to grow by 60 percent by 2033.
After completing the offering, Parkin plans to distribute semi-annual dividends to its shareholders in the months of April and October, taking into account the expectations of distributing the first batch of dividends in October 2024 for the first half of 2024, with investors purchasing shares eligible to receive the full dividends for the first half of 2024. Year 2024
For the full fiscal year 2024 and beyond, the minimum dividend distribution will be the higher of the following two options: (1) 100% of annual profits, and (2) free cash flow to equity, taking into account distributable reserve requirements.
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