(MENAFN) Parkin, a UAE-based company specializing in public parking services, made a remarkable debut on the Dubai Financial Market, with its shares soaring by as much as 31 percent following its highly anticipated initial public offering (IPO). The IPO, valued at USD429 million, garnered unprecedented demand, setting a new record for the Emirate of Dubai.
Shares of Parkin commenced trading at 2.73 dirhams on Thursday, significantly higher than the offer price of 2.1 dirhams. The overwhelming interest in Parkin's IPO was evidenced by the fact that it was oversubscribed more than 165 times, reflecting the immense investor appetite for the company's shares.
The subscription period for Parkin's shares began on March 5 and concluded on March 13, 2024, during which 749.7 million shares were offered, equivalent to 24.99 percent of the company's total capital, at an offering price of 2.1 dirhams per share. This robust demand underscores the strong investor confidence in Parkin's growth prospects and the attractiveness of its investment opportunity.
Parkin's successful IPO adds to the trend of Gulf listings attracting significant levels of demand, as investors seek opportunities for lucrative dividends and the potential for strong share price performance. Notably, Dubai's previous IPO, the USD315 million offering of taxi business Dubai Taxi, also witnessed substantial demand, with orders totaling USD41 billion and a subsequent 23 percent increase in its share price since its debut in December.
The remarkable performance of Parkin's shares on its debut reflects the buoyancy of the Dubai Financial Market and underscores the attractiveness of investment opportunities in the region's burgeoning companies. As Parkin continues its journey as a publicly traded entity, investors will closely monitor its performance and growth trajectory in the dynamic market landscape of the UAE.
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