Page 186 - SALIK PR REPORT JANUARY 2024

expecting the government and its entities to announce new IPOs over the
course of the coming months and years. If effective, Parkin’s IPO could
happen in the coming months and could follow in the footsteps of Dubai
Taxi and could raise comparable amounts,” Abuagla told Khaleej Times.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and
Prime Minister of the UAE and Ruler of Dubai, issued the law on Wednesday
to establish Parkin. The new firm is empowered to act independently and will
have complete control over its finances, administration, and legal matters.
The Road and Transport Authority (RTA) is set to delegate some of its duties
related to public and private parking to Parkin under a franchise agreement.
Individuals can obtain permits from the company through which they can
subscribe to public parking spots and reserve parking spaces per the terms of
the franchise contract.
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Parkin will also be engaged in investments in associated business activities.
The law permits individuals to own shares in the company through public or
private subscription.
Vijay Valecha, chief investment officer, Century Financial, said that currently
all of Parkin’s shares are owned by the Government of Dubai. However, Parkin
is likely to partake in an IPO in the future.
“This is apparent from the RTA’s strategic plan to monetise its assets as well
as the Dubai government’s efforts to bolster privatisation as it drives
economic growth and profitability,” he said.
As per the law, the proportionate holdings of the Government of Dubai in
Parkin must not fall below 60 per cent of the company’s capital as and when
it sells shares to the public.
“The decision to go public hinges heavily on the swiftness with which a
company establishes itself after inception. Consistent financial performance,
public demand, capital requirements, and regulatory approvals are some of
the many considerations that dictate the timing of an offering. Nonetheless, a
successful IPO for Parkin will require a minimum of one year of operating
history to establish a track record and generate investor interest,” he said.

Strong demand for IPO

Prior to Parkin, the government spun off toll operator Salik and Dubai Taxi
Company and sold its shares through the IPO as part of its announcement to
list 10 public sector entities on the Dubai Financial Market in order to raise the
market capitalisation of the bourse to Dh3 trillion.
Both the IPOs – Salik and Dubai Taxi – witnessed strong responses from both
institutional and retail investors, recording massive oversubscription.
Salik IPO was oversubscribed 49 times in 2022, raking in Dh184.2 billion ($50.2
billion) while Dubai Taxi IPO was oversubscribed 130 times as well.

https://www.khaleejtimes.com/business/markets/after-salik-and-dubai-taxi-newly-formed-parkin-could-
launch-ipo-next-experts