Dubai is set to witness its first initial public offering (IPO) of 2024, with Parkin, the emirate’s Roads and Transport Authority (RTA) parking division, taking center stage. This move follows the successful privatization initiatives of Dubai, where government entities like Salik (toll roads) and Dubai Taxi witnessed significant investor interest and oversubscription during their respective IPOs in 2022.
Parkin’s IPO, slated to begin accepting subscriptions on March 5th, aims to offer 24.99% of its shares to the public. This offering comes after the company was incorporated as a public joint-stock company in January 2024, paving the way for its public listing on the Dubai Financial Market (DFM).
The news has generated excitement among investors, particularly retail participants. This is not only the first IPO of the year, but also the third entity from the RTA to join the DFM, following the successful listings of Salik and Dubai Taxi.
The Parkin IPO prospectus details that 10% of the offered shares will be reserved for retail investors, with a guaranteed minimum allocation of 2,000 shares per investor. This move is expected to further boost investor participation and contribute to the Dubai government’s privatization goals.
The success of prior government-backed IPOs in Dubai bodes well for Parkin. Salik, for example, witnessed an oversubscription of 49 times in 2022, raising a staggering $5.2 billion. Similarly, Dubai Taxi’s IPO was oversubscribed by a remarkable 130 times. These figures highlight the strong investor confidence in Dubai’s economy and the potential for Parkin’s IPO to generate significant interest.
As Parkin gears up for its public debut, the market eagerly awaits the final details, including the offer price range, which will be announced on the opening day of subscriptions. With the proven track record of past government offerings and growing investor enthusiasm, Parkin’s IPO is poised to be a major event in the first quarter of 2024 for the DFM and the broader UAE market.
Also published on Medium.
