Dubai's Parkin sets IPO price range of up to AED 2.1 per share

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Dubai's Parkin, which oversees public parking operations in the emirate, has set the price range for its planned initial public offering (IPO) at AED 2 to 2.1 per share, it said on Tuesday.

The company will offer about a 25 per cent stake, in the emirate's first privatisation deal this year, giving it an overall valuation of up to AED 6.3 billion ($1.72 billion).

The book-building period will run March 5-13 and the final price is expected to be announced on March 14, Parkin said in a statement, adding its debut on the local bourse is forecast for March 21.

Parkin operated about 179,000 paid public parking spaces across Dubai as 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.

Parkin, which expects to make its bourse debut this month, posted revenue of AED 779 million in 2023, up 14 per cent from a year earlier, while its core profit rose 23 per cent to AED 414 million.

In June, Dubai's Roads & Transport Authority (RTA) floated plans to look at strategic options for its parking business and invited banks to pitch for roles in a potential IPO.

It's part of a wider privatisation programme by the Dubai government.

The RTA raised $1 billion from the sale of a 25 per cent stake in toll-road operator Salik in 2022 and another $315 million in December from the sale of another 24.99 per cent stake in Dubai Taxi Corporation, its public taxi business.

Both deals garnered strong demand from investors and were oversubscribed multiple times.

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