Parkin expands IPO retail tranche after high demand

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Parkin, the Dubai government’s parking management company, has increased the UAE tranche of its initial public offering (IPO) from 10 percent to 12 percent, after high demand for its shares .

After approval from the Securities and Exchange Authority, the retail offer rose to just under 90 million ordinary shares, from 75 million.

The retail tranche’s size is between AED180 million and AED189 million ($49 million to $51 million), based on the previously announced price range of AED2 to AED2.10 per share.

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Despite the changes in the retail allocation, the total offering size remains unchanged at just under 750 million ordinary shares, a quarter of the company’s total issued share capital.

The number of shares allocated under the qualified investor tranche will be reduced to 660 millioon from 675 million, representing 88 percent of the offer shares, down from the previously announced 90 percent.

The subscription period for the UAE retail offering ended on March 12, and the subscription period for qualified investors will end on March 13.

The company is offering a 25 percent stake in the emirate’s first privatisation deal this year, giving it a valuation of between AED6 billion and AED6.3 billion ($1.6 billion to $1.7 billion).

Parkin plans to channel the proceeds from its IPO into technological upgrades, including expansion of its electric vehicle services. 

The company has already rolled out technology, such as 100 percent solar-powered charging meters, paperless tickets and fines, moving to a hybrid vehicle fleet, and expanding its smart parking inspection capabilities, as part of its plans to have net-zero operations by 2050.

Parkin is expected to start trading on the Dubai Financial Market on March 21.