Parkin PJSC Logo Artwork Dubai
Even before Parkin announced its IPO, the talk was that it would be over-subscribed by more than 100 times. Now, it's set a new record for a DFM bound stock listing. Image Credit: Supplied/Dubai Media Office

Dubai: The Parkin IPO netted a 'record-breaking' demand of around Dh259 billion as investors from the UAE and overseas parked their funds. This means the IPO was oversubscribed 165 times - and representing the highest ever oversubscription level achieved on the DFM.

The company has set the share price at Dh2.1. Analysts had been unanimous that Parkin will choose the higher of the Dh2-Dh2.1 range for its final price. The company was offering a 24.9 per cent stake via the listing. 

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The retail investors combined to pile in with Dh29 billion, which implies oversubscription levels of 153 times, with almost 63,000 applications received - also record for a DFM IPO.

This now sets up the RTA-affiliated entity with a market cap of Dh6.3 billion when it lists March 21 on the DFM. "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. "This resounding confidence in our attractive equity story is testament to our best-in-class business model, strong financial performance, and the clear growth opportunities we see for Parkin."

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Dubai's RTA (Roads & Transport Authority) thus scores a hat-trick of IPO hits, after Salik and Dubai Taxi Company (which was the last DFM listing of 2023).

This week, Parkin also raised the retail investor tranche to 12 per cent from 10 earlier.

Dh1.57 billion in gross proceeds
The proceeds from the IPO totaling Dh1.57 billion will go to Dubai Investment Fund, which is the selling shareholder. In all, 749.7 billion shares were released to investors, or equivalent to 24.99% of Parkin’s total issued share capital.

Retail subscriptions

Banks had been reporting significant demand for secured loans from their retail clients ahead of the subscription opening. As was the case with Dubai Taxi Co. and Salik, there are a sizeable number of first-time stock market investors among them.

The professional investors, meanwhile, came up with Dh230 billion, or an oversubscription level of 166 times at the final offer price. 

Long-term value

And Parkin's top official provided a shout out to these investors when he said that the IPO and the stock represent long-term value. I am excited to welcome our new investors to Parkin and reaffirm our commitment to delivering long-term value to all our stakeholders,” said Al Ali. 

"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 privatization programme and the continued expansion of the DFM."