From Pavements to Portfolios: Parkin’s IPO Roars into Action 

Parkin Company, the leading provider of paid parking facilities and services in Dubai, has revealed plans to embark on an initial public offering (IPO) and subsequently list its ordinary shares (Shares) on the Dubai Financial Market (DFM). 

In a groundbreaking move, Parkin intends to offer 749,700,000 shares, each with a nominal value of AED 0.02, representing 24.99% of its total issued share capital. The offering will consist of existing shares held by the Dubai Investment Fund, the selling shareholder, who retains the right to adjust the offering size at their discretion before the end of the subscription period. 

Investors, including UAE Retail Investors and professional investors outside the United States, will have the opportunity to participate in the offering. The subscription period is slated to commence on March 5, 2024, and conclude on March 12, 2024, for UAE Retail Investors, with Qualified Investors having until March 13, 2024, to subscribe. 

Notably, the Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has confirmed the offering’s compliance with Shariah principles, emphasizing the importance of due diligence for prospective investors. 

Ahmed Hashem Bahrozyan, Chairman of Parkin’s Board of Directors, said: “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.” 

Eng. Mohamed Al Ali, CEO of Parkin, added: “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. 

Rothschild & Co Middle East Limited has been appointed as the Independent Financial Advisor. 

Emirates NBD Capital, Goldman Sachs International, and HSBC Bank Middle East Limited have been appointed as Joint Global Coordinators and Joint Bookrunners. 
Abu Dhabi Commercial Bank, EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE) and First Abu Dhabi Bank have been appointed as Joint Bookrunners. 

Emirates NBD Bank has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank and Wio Bank have also been appointed as Receiving Banks. 

The IPO is expected to bolster Parkin’s capital structure and pave the way for a semi-annual dividend payment schedule, with the first payment anticipated in October 2024. The company aims to maintain a minimum dividend payout in line with its profit or free cash flow to equity, subject to distributable reserves requirements. 

Following completion of the offering and subsequent admission to trading on the DFM in March 2024, Parkin will enter a new phase of growth, underpinned by its exclusive rights to operate Dubai’s public parking facilities. With a track record spanning nearly three decades, Parkin is poised to capitalize on Dubai’s ambitious expansion plans, cementing its position as a key player in the Emirate’s infrastructure landscape.