Page 190 - SALIK PR REPORT JANUARY 2024

and could follow in the footsteps of 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, 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.

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 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.

https://www.msn.com/en-ae/news/featured/after-salik-and-dubai-taxi-newly-formed-parkin-could-
launch-ipo-next-experts/ar-AA1ms4pc