Parkin raises AED 1.6 billion with 165x oversubscription
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Parkin Company today announced that it has set the final offer price for its Initial Public Offering (IPO) at AED 2.10 per share.
This will result in approximately AED 1,574.37 million (approximately US$428.69 million) in gross proceeds to Dubai Investment Fund (selling shareholder). The company and the selling shareholder confirm the previously announced offer size of 749,700,000 shares, equivalent to 24.99% of Parkin’s total issued share capital.
The Offering saw record interest with total gross demand for the IPO of c. AED 259 billion (approximately $71 billion) at the final offer price, implying an oversubscription level f c. 165 times for all tranches combined at the final offer price, representing the highest level of oversubscription ever achieved in the DFM.
The Qualified Investor tranche attracted exceptional global demand of over AED 230 billion (approximately $63 billion), implying an oversubscription level of c. 166 times the final offer price. The retail offering generated huge appetite from local investors with demand of c. AED 29 billion (c. $8 billion), implying oversubscription levels of c. 153 times and almost 63,000 applications received, a record for a DFM IPO.
This overwhelming investor demand is a testament to Parkin’s compelling investment proposition and its continued confidence in Dubai’s critical infrastructure and its long-term growth prospects.
Mohamed Al Ali, CEO of Parkin, saying,
“Today represents a milestone for our business as we achieved record investor demand for Parkin shares with total subscriptions covered 165 times. This resounding confidence in our attractive equity story is a testament to our best-in-class business model. of its class, our strong financial performance and the clear growth opportunities we see for Parkin.
“As critical infrastructure for Dubai, we operate at the center of the city’s exciting and ambitious growth plans. The IPO will allow us to build on and accelerate our success in providing innovative, sustainable and seamless mobility solutions across the Emirate. “I am proud to support Dubai’s privatization program and the continued expansion of Dubai’s financial market. “I am excited to welcome our new investors to Parkin and reaffirm our commitment to delivering long-term value to all our stakeholders.”
Biscuit It is expected to begin trading on the DFM on March 21, 2024, under the symbol “PARKIN” and ISIN AEE01370P249. Upon listing, the company will have a market capitalization of AED 6.3 billion ($1.72 billion).
News source: Emirates News Agency
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