The Dubai government plans to sell 25% of the city's public parking lot business in an initial public offering and move forward with a privatization plan to revitalize the capital market.
Dubai Investment Fund will sell 749.7 million shares in Perkin, according to a statement. The subscription period begins on March 5th and is scheduled to end on March 12th. The bookbuilding period for institutional investors ends on March 13th.
Parkin's IPO comes about two months after Dubai raised $315 million from the listing of the city's taxi business. The share sale is part of a plan announced at the end of 2021 to list 10 state-owned companies to increase trading volumes and rival similar moves in Abu Dhabi and Riyadh.
Since then, the emirate has sold stakes in five companies, raising about $8.6 billion, according to data compiled by Bloomberg.
The Emirates Investment Authority and the local military pension and social security fund will each set aside 5% of the provision for them.
Parkin said the company plans to pay a minimum dividend for the full year of 2024 of 100% of its profits or free cash flow on shares, whichever is higher.
The energy-rich Persian Gulf has been in the midst of an IPO boom for the past two years as governments list state-owned companies to raise funds for the post-oil era. Rising oil prices and increasing interest from international investors are also contributing to the wave of IPOs.
Emirates NBD Capital, Goldman Sachs Group and HSBC Holdings are joint global coordinators for Perkin's IPO, and Rothschild & Company is an independent financial advisor.
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