Dubai's Parkin surges 30% on trading debut in UAE's first IPO of the year
DUBAI, United Arab Emirates — Shares of Dubai parking operator Parkin surged more than 30% Thursday as the company went public on the Dubai Financial Market.
Parkin's price per share jumped to 2.73 dirhams ($0.74) as trading began, marking an overwhelmingly positive debut for the United Arab Emirates' first public listing of the year. Shares were initially priced at the top end of their range at 2.1 dirhams, giving the company a valuation of $1.7 billion.
Raising 1.57 billion dirhams ($429 million) for its IPO, Parkin was oversubscribed by 165 times, seeing demand of 259 billion dirhams — a record for the exchange.
Parkin is the largest provider of paid parking in Dubai, and is set to see further demand as the city's population climbs. The expat hub in the first half of 2023 saw a 63% increase in residency visas issued compared to the same period a year prior.
"There are clear indications that Dubai is on a growth trajectory, and Parkin is an integral part of the city of Dubai. So as Dubai grows, it's only natural that Parkin grows as well," Parkin Chairman Ahmed Hashem Bahrozyan told CNBC's Dan Murphy shortly after trading began on Thursday.
Parkin's owner, the Dubai Investment Fund, offered a 25% stake in its listing of the company and demand from state institutions and families has been high, suggesting a robust appetite for Gulf investment.
Parkin is offering a dividend of 100% of profit or free cash flow to equity, whichever is higher, "subject to distributable reserves requirements," according to its prospectus.
Asked if the company would be able to maintain such a level of payouts going forward, Bahrozyan said: "We are very confident we can, as I said the level of growth in the city promises that we will grow. And we do