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Parkin Company today announced that it has set the final offer price for its Initial Public Offering (IPO) at AED2.10 per share.
This will result in approximately AED1,574.37 million (c. US$428.69 million) of gross proceeds for Dubai Investment Fund (Selling Shareholder). The Company and Selling Shareholder confirm the previously announced Offering size of 749,700,000 shares, equivalent to 24.99% of Parkin's total issued share capital.
The Offering saw record-breaking interest with total gross demand for the IPO of c. AED259 billion (c. $71 billion) at the final offer price, implying an oversubscription level f c. 165 times for all tranches combined at the final offer price, representing the highest ever oversubscription level achieved on the DFM.
The Qualified Investor tranche attracted exceptional global demand of more than AED230 billion (c. $63 billion) implying an oversubscription level of c. 166 times at the final offer price. The retail offering saw tremendous appetite from local investors with demand of c. AED29 billion (c. $8 billion), implying oversubscription levels of c. 153 times, and almost 63,000 applications received, a record for a DFM IPO.
This overwhelming investor demand is a testament to Parkin's compelling investment proposition and continued confidence in Dubai's critical infrastructure and long-term growth prospects.
Mohamed Al Ali, CEO of Parkin, said, "Today represents a milestone moment for our business as we secured record-breaking investor demand for Parkin shares with overall subscriptions covered 165 times. This resounding confidence in our attractive equity story is a testament to our best-in-class business model, strong financial performance, and the clear growth opportunities we see for Parkin.
"As a critical infrastructure to Dubai, we operate at the centre of the city's exciting and ambitious growth plans. The IPO will enable us to build on and accelerate our success in providing seamless, sustainable, and innovative mobility solutions across the Emirate. We are proud to support Dubai's privatisation programme and the continued expansion of the Dubai Financial Market. I am excited to welcome our new investors to Parkin and reaffirm our commitment to delivering long-term value to all our stakeholders."
Parkin is expected to commence trading on the DFM on 21st March 2024, under the symbol "PARKIN" and ISIN AEE01370P249. At listing, the Company will have a market capitalisation of AED6.30 billion ($1.72 billion).
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