Arab News, Wed, Feb 28, 2024 | Shaban 18, 1445
Dubai’s Parkin to sell 24.99% stake in IPO
Emirates:
The Dubai government is selling a 24.99 percent stake in Parkin, which oversees
public parking operations in the emirate, through an initial public offering in
the emirate’s first privatization deal this year, Parkin said in a statement on
Tuesday.
Parkin’s shareholder, Dubai Investment Fund, plans
to sell all of the 749.7 million shares in the offering, the firm said, adding
it expects to make its bourse debut next month.
The offering begins on March 5, with a price range
announced on the same day, and the subscription period ends on March 12 for
retail investors and on March 13 for qualified investors.
Reuters was first to report in June last year that
the Roads & Transport Authority was considering strategic options for its
parking business and invited banks to pitch for roles in a potential IPO.
Parkin operated about 179,000 paid public
parking spaces across the Dubai emirate of the end of last year, of which 4,000
or so were at multi-storey car parks. It also manages an additional 18,000
spaces at developer-owned facilities, it said.
The RTA is monetizing assets on behalf of the
Dubai government as part of a wider privatization program to list state-linked
companies and boost attention to its exchange.
The RTA raised $1 billion from the sale of a 25
percent stake in toll-road operator Salik in 2022 and another $315 million in
December from the sale of another 24.99 percent stake in Dubai Taxi Corp., its
public taxi business.
Both deals garnered strong demand from investors;
books were oversubscribed multiple times.
A post-COVID economic rebound, neutral political
stance, ease of doing business, convenient time zones, and tax-free status have
all contributed to Dubai's attracting droves of wealthy individuals in recent
years.
The number of residents in the city jumped by
100,240, official statistics show, reaching 3.65 million people at the end of
last year, compared with 3.55 million people on Jan. 1, 2023.
Rothschild was appointed as an independent
financial adviser while Emirates NBD, Goldman Sachs and HSBC are acting as joint
global coordinators and joint bookrunners.
After the offering, Parkin plans to pay a
semi-annual dividend in April and October, Chief Financial Officer Khattab Abu
Qaoud said. He added that the minimum dividend payout for 2024 would be more
than the net profit for the year, or exceed free cash flow to equity.
Companies domiciled in the Gulf Cooperation
Council raised $11 billion in IPO proceeds in 2023, down 45 percent from 2022.
GCC IPOs accounted for 40 percent of proceeds raised in EMEA during 2023, down
from 56 percent during 2022, LSEG data showed.
Parkin reported revenues of 779 million dirhams
($212.11 million) in 2023, up 14 percent from a year earlier, while its core
profit rose 23 percent to 414 million dirhams.