Parkin shares rose by 30% in the first minutes of trading on the Dubai Financial Market today, Thursday, to reach 2.73 dirhams per share.
The company announced today that it has appointed XCUbe as a liquidity provider for its shares by providing continuous bids and offers to investors so that they can easily trade the shares. This agreement contributes to reducing bid-ask spreads and improving the stability of the shares.
The company, which is the largest provider of paid parking facilities and services in Dubai, received about 259 billion dirhams ($71 billion) to subscribe for 25% of its shares. The subscription was thus covered about 165 times for all the tranches allocated to the offering.
The company set the final offering price at the upper end of the price range of AED 2.1 per share, bringing the total amount the company will receive from the offering to approximately AED 1.57 billion ($429 million).
The newly established company has a 49-year concession agreement with the Roads and Transport Authority (RTA) starting this year, giving it exclusive rights to operate all of the RTA’s existing and new public vehicle facilities. The company owns all on-street and off-street paid parking spaces in Dubai, as well as 91% of the total paid side parking market in the emirate.
Parkin has appointed Rothschild & Co Middle East as independent financial advisor, Emirates NBD Capital, Goldman Sachs International and HSBC Bank Middle East as joint global coordinators and joint bookrunners. Abu Dhabi Commercial Bank, EFG Hermes Emirates and First Abu Dhabi Bank have been appointed as joint bookrunners.
The Parkin offering is the sixth privatization by the Dubai government as part of a plan unveiled in late 2021 to list 10 government-owned companies to boost trading volumes and match similar markets in Abu Dhabi and Riyadh.
