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Parkin IPO

On 27 February 2024, Parkin announced its intention to list on the Dubai Financial Market (“DFM”). 749,700,000 shares in Parkin each with a nominal value of AED 0.02 will be made available in the Offering, representing 24.99% of Parkin's total issued share capital.

This section of the website contains information about Parkin, the planned listing and how you can subscribe for shares in Parkin.

Parkin: Dubai's pioneer in parking solutions

The Emirate of Dubai's parking operations were established in 1995 under Dubai Municipality, before becoming part of the Road and Transport Authority (“RTA") in 2005. In December 2023, Parkin Company P.J.S.C. was established through the issuance of Law No. 30 of 2023.

Parkin is the exclusive paid public parking operator in Dubai with a natural dominant position in Dubai's parking market. With a track record spanning almost three decades, Parkin operates technologically advanced, digitally enabled parking facilities and services at extensive and strategic locations across Dubai, providing a superior customer experience.

Parkin's mandate is protected by a well-defined and comprehensive Concession Agreement with the RTA for a 49-year period starting in 2024. The Concession Agreement grants Parkin exclusive rights to operate all of the RTA's existing and new paid public parking facilities (i.e., on-street, off-street and multistorey car parking). Parkin also operates certain developer-owned parking facilities through partnership agreements across the Emirate and will focus on expanding this segment in the future. Parkin is responsible for the enforcement of paid public parking in Dubai.

On 27 February 2024, the Company announced its intention to offer 24.99% of its total issued share capital on the DFM. Upon completion of the Offering, the Dubai Investment Fund (DIF) will own 75.01% of Parkin.

Letter from the Chairman

Dubai is one of the most prominent, vibrant, and fast-growing cities in the world. With its systemic role in Dubai's transport ecosystem, now and in the future, Parkin will operate at the centre of the city's exciting and ambitious growth plans. As the city's population and economy continues to grow, our company will grow with it.

The Parkin team has 27 years of experience in parking management in Dubai. During this period, we have been a clear market leader in developing and implementing innovative technologies; expanding digitalization; and driving operational excellence in the sector. In 1995, we started with 1,000 parking spaces in Dubai. Today we stand at approximately 197,000 paid parking spaces across the Emirate, the majority of which is public parking. This evolution has focused on providing a world-class experience to our customers, led by a highly experienced management team.

The IPO is an important and exciting moment for Parkin - enabling us to build on and accelerate our success as the leading public parking provider in the Emirate of Dubai. We will continue to enhance and expand our vision to provide seamless, sustainable, and innovative mobility solutions and services that support the vision of our wise leadership to make Dubai the best city to live in worldwide.

Dubai's 2040 Urban Master Plan seeks to increase the Emirate's population by approximately 60% by 2040 with Dubai's GDP growth set to double by 2033. With private cars being the preferred mode of transport across the Emirate, Dubai's extensive road infrastructure and parking services will be critical to these ambitions; and Parkin is well positioned to support these mobility needs now and in the future.

Ahmed Hashem Bahrozyan

Chairman of Parkin

Letter from the CEO

Parkin's parking mandate is protected by a well-defined and comprehensive Concession Agreement with the RTA for a 49-year period, granting Parkin exclusive rights to operate all of the RTA's existing and new parking facilities following the IPO.

The Parkin business has a market leading position in Dubai with exceptional operational capabilities; a track record of strong financial performance; and limited competition. We operate under a capex-light model as the RTA remains responsible for all Parkin's major capital expenditure under the Concession Agreement. Our business model is resilient and predictable with a robust framework securing infrastructure-like cash flows. With strong margins and high cash conversion, Parkin is committed to attractive shareholder returns.

Since we started, the Parkin team's aim has been to create a technologically advanced company with a fully digitized customer journey. We have been early adopters of customer engagement solutions with access to loyalty and permit programmes and flexible digital payment channels that now account for ~90% of all transactions. This proven track record of innovation is set to continue with projects currently in development at Parkin including smart parking lots; frictionless multi-storey parking; and a parking occupancy AI model.

Parkin is a platform with huge potential for growth. We have multiple initiatives to scale up and diversify across our business. We constantly assess the need for new paid parking facilities to expand in existing areas and develop in new urban areas across Dubai. We see strong potential in new agreements with third parties and expect to expand additional commercial activities, such as advertising, across our footprint. Further digitization; supporting EV car adoption; tariff optimization; and geographic expansion all represent significant opportunities for our business.

As a result, I am confident in Parkin's future success and delivering on our ambition to become one of the leading parking providers in the world.

Mohamed Al Ali

CEO of Parkin

Our IPO Timeline

  • 27 February 2024 Announcement of Intention to Float on the DFM
  • 5 March 2024 Offer Commencement Date and Price Range Announcement
  • 12 March 2024 Close of Retail Investor Tranche (“First Tranche”)
  • 13 March 2024 Close of Institutional Investor Tranche (“Second Tranche”)
  • 14 March 2024 Announcement of Final Offer Price
  • 19 March 2024 Refunds and allocation of shares
  • 21 March 2024 Expected date of listing of shares on the DFM

Key IPO Documents

FAQS

What is Parkin and what does the company do?

Parkin is the leading pioneer in parking solutions in Dubai. It operates under a 49-year concession agreement with the RTA, who is responsible for all major capital expenditure and maintenance of the land allocated to street parking in Dubai. Parkin provides a critical infrastructure to Dubai, with the potential to benefit from the Emirate's ambitious expansion plans.

Which geographies does Parkin operate in?

Parkin currently operates exclusively in Dubai.

Who are the existing Parkin shareholders? Who is the owner of Parkin?

The Government of Dubai, through the Dubai Investment Fund (DIF), is currently - and prior to this Offering - the 100% shareholder of Parkin. Following the Offering, the Government of Dubai, through DIF, will continue to be the majority shareholder of Parkin.

Which exchange is Parkin listing on? Why is this the chosen market for the IPO?

Parkin will be listing its shares on the Dubai Financial Market. Being a Dubai-headquartered company, the DFM was a natural choice as a listing venue.

How has Parkin been performing financially?

Parkin has demonstrated a strong financial performance with high margins and superior cash conversion. The company's operating model and favourable regulatory framework translates into superior margins and strong cash conversions. Parkin's revenue grew by 14% from AED686m in 2022 to AED779m in 2023. For the same year, EBITDA grew at a higher rate of 23% from AED337m in 2022 to AED414m in 2023. The company's capex light business model resulted in a superior cash conversion rate of 99% in 2023.

What is Parkin's growth strategy?
  • The Dubai Government's Urban Master Plan seeks to grow the population of the Emirate by more than 60% by 2040 with the number of registered vehicles in Dubai expected to increase by 4% per year on average by 2033.
  • In line with these growth rates, the demand for public parking in the Emirate is expected to increase by 4.8% per annum on average to 2033, underpinning the company's growth.
  • Parkin has the exclusive right to operate and manage new parking facilities built and acquired by the RTA to expand its parking footprint in Dubai.
  • Other potential future revenue streams include converting unpaid parking spaces to paid; establishing new agreements with private developers; expanding new commercial activities such as advertising; electric vehicle related activities; further digital enhancements to drive automation and efficiency; and expanding the company's operational expertise globally.
What is the dividend policy?
  • Parkin will pay a dividend on a semi-annual basis in April and October of each year.
  • The minimum dividend payout will be the higher of:
    • 100% of profit for the year
    • Free cash flow to equity, subject to distributable reserves requirements.
  • The first payment will be made in October 2024 based on H1 2024.
Why is Parkin deciding to list?

The Offering is being conducted, among other reasons, to allow the selling shareholder to sell part of its respective shareholding interests, while providing increased trading liquidity in the shares and raising the company's profile with the international investment community.

How can I subscribe for shares in Parkin's IPO? / How does the subscription process work?
  • Make sure you have your DFM National Investor Number (NIN). If you don't have a NIN, you can register for one instantly through eServices at www.dfm.ae or on the DFM Smart Services app.
  • Investing in equities encompasses risks of which you should inform yourself. Please before making any decision, do familiarise yourself with Parkin and its initial public offering (IPO) to make an informed investment decision by reading the Prospectus.
  • If you have decided that you would like to invest, you can do so by reaching out to DFM at www.dfm.ae or contacting any of the receiving banks listed on this webpage.
What documents to I need to apply for shares?

Investors need a Dubai Financial Market National Investor Number (NIN) to subscribe to the IPO. Please refer to the Prospectus to know more about the documents accompanying Subscription Applications.

How do I register for a Dubai Financial Market Investor Number (NIN) to subscribe to Parkin's IPO?

The following channels can be used to apply for a DFM Investor Number:

Platform Type of investor
DFM App For Individual Investors only (excluding minors below age 21)
eServices at www.dfm.ae For all Types of Investors
Dubai CSD Desk at DFM Trading Floor For all Types of Investors Timings: Monday -Thursday (8:30 am - 3:00 PM) & Friday (8:30am-12:30pm)
Licensed Brokerage Firms at DFM For all Types of Investors

Please refer to the Dubai Financial Market website for information on the process of registering for a NIN at www.dfm.ae or access the DFM FAQs at www.dfm.ae/docs/en/faqs/eipo

Is there a fee for obtaining a DFM Investor Number (NIN)?

No, there is no fee for obtaining a DFM Investor Number (NIN).

I have lost / forgotten my DFM Investor Number (NIN), what do I do?

Please call the DFM Customer Services Affairs on +971 4 305 5555 from the mobile number you have registered with the DFM (weekdays 8am - 3pm) to receive the DFM Investor Number (NIN) immediately over the phone. Alternatively, investors can visit the Dubai CSD Desk at DFM Trading Floor, Rashid Tower, World Trade Centre, Dubai (From 08:30 to 03:00, Monday to Thursday and from 08:30 to 12:30 on Friday).

Which local banks can I subscribe for shares through?

For further information on the subscription process per bank, please refer to the full list of FAQs under the 'Key Documents' section.

For further information, please Download the FAQs document

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