Dubai’s Parkin valued at $1.7bn on listing

Parkin, the Dubai government’s parking management company, has set the price range for its proposed initial public offering (IPO) at AED2 to AED2.1 ($0.54–0.57) per share.

The company will offer a 25 percent stake, which is the emirate’s first privatisation deal this year, giving it a valuation of between AED6 billion and AED6.30 billion ($1.6 billion–1.7 billion).

The book-building period will run from March 5 to March 13 and the final price is expected to be announced on March 14. The stock is expected to be listed on the Dubai Financial Market (DFM) on March 21.

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Parkin plans to channel proceeds from its initial public offering into technological upgrades, including expansion of its electric vehicle services. 

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

“Customer experience is all about the underlying technology and what it offers, so that’s going to be our main focus going forward,” Ahmed Hashem Bahrozyan, chairman of Parkin, told AGBI.

The Parkin IPO is also part of a broader strategy to monetise state-linked entities to boost capital markets.

In January, under new legislation, Parkin transitioned into a public joint stock entity, poised to float about 750 million shares.

Parkin last year reported revenues of about AED779 million, up from AED686 million in 2022. It is the third Roads and Transport Authority entity to float and list on the DFM, after toll-road operator Salik and Dubai Taxi Co.