Dubai's Parkin IPO gets oversubscribed 165 times, raises AED 1.6 billion

Parkin Company's Initial Public Offering (IPO) has set an oversubscription record on the Dubai Financial Market. It was oversubscribed by 165 times with a record demand of AED 259 billion from investors.

It comes as Parkin increased its IPO shares from 74.97 million to 89.96 million due to high demand. The overall offering size is equivalent to 24.99 per cent of Parkin's total issued share capital.

This adjustment raises the retail section to 12 per cent of the offer, valued between AED 179.93 million and AED 188.92 million, while the qualified investor section decreases to 88 per cent.

Subscription for the UAE retail closed on March 12, and for qualified investors on March 13.

Parkin has set the final offer price at AED 2.10 per share.

"Today represents a milestone moment for our business as we secured record-breaking investor demand for Parkin shares with overall subscriptions covered 165 times," said Mohamed Al Ali, CEO of Parkin. "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.

"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."

Parkin is expected to commence trading on the DFM on March 21, under the symbol "PARKIN" and ISIN AEE01370P249. At listing, the Company will have a market capitalisation of AED 6.3 billion.