Dubai’s Parkin, a leading parking operator, made an impressive debut on the Dubai Financial Market as its shares surged by more than 30% during its initial public offering. The company raised a substantial 1.57 billion dirhams ($429 million) for its IPO, which was oversubscribed by an astounding 165 times, reflecting the enormous demand for its shares.

With an initial price per share of 2.1 dirhams, Parkin’s shares soared to 2.73 dirhams as trading commenced, valuing the company at $1.7 billion. The successful IPO marks the United Arab Emirates’ first public listing of the year, signaling a positive start for the regional market.

Parkin, the largest provider of paid parking in Dubai, is poised to capitalize on the city’s growing population. The first half of 2023 witnessed a remarkable 63% increase in residency visas issued in the expat hub, indicating a surge in demand for parking services.

Commenting on the company’s growth prospects, Parkin Chairman Ahmed Hashem Bahrozyan emphasized its integral role in Dubai’s expansion, stating, ‘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.’

The Dubai Investment Fund, Parkin’s owner, offered a 25% stake in the company’s listing, attracting substantial interest from state institutions and families. This heightened demand underscores the strong appetite for Gulf investments and reflects confidence in Parkin’s future performance.

Furthermore, Parkin is set to offer a dividend of 100% of profit or free cash flow to equity, subject to distributable reserves requirements, according to its prospectus. When questioned about the sustainability of such payouts, Bahrozyan expressed confidence, citing comprehensive expansion plans and the city’s promising growth trajectory as key factors driving the company’s future success.

Parkin’s successful IPO follows a relatively quiet period for listings in Dubai, following a flurry of public offerings in 2022. The company’s robust debut sets a positive tone for the regional market and positions Parkin as a key player in Dubai’s evolving economic landscape.