Parkin PJSC Gets $71 Billion in Demand for $429 Million #Dubai IPO - Bloomberg

Parkin PJSC Gets $71 Billion in Demand for $429 Million Dubai IPO - Bloomberg

Parkin Co. PJSC received $71 billion of orders for its $429 million Dubai initial public offering, underscoring the continued strong demand for share sales in the Persian Gulf.

The IPO of the city’s parking business was 165 times covered, according to a statement on Thursday. The final price was set at 2.10 dirhams per share, the top of a marketed range, valuing Parkin at $1.7 billion. The Dubai Investment Fund sold 749.7 million shares, or a 25% stake, in the IPO.

Parkin is the latest Gulf listing to attract overwhelming levels of demand as investors bet on juicy dividends as well as on the strong share price performance of new companies. Dubai’s last IPO, the $315 million float of its taxi business, got $41 billion worth of orders.

Governments in the Gulf — particularly the United Arab Emirates and Saudi Arabia — have embarked on a listing spree in the last few years to fund the diversification of their economies away from fossil fuels. The IPOs have attracted strong demand amid a global listings slump due to rising interest rates, as high oil prices fueled local liquidity and international investors increasingly focused on the region.

Parkin’s IPO is the sixth privatization by the Dubai government as part of a plan, unveiled at the end of 2021, to list 10 state-owned companies to boost trading volumes and match similar drives in Abu Dhabi and Riyadh.