Parkin Company PJSC UAE Public Offering | Investment Products (2024)

Parkin Company PJSC UAE Public Offering

Dubai Islamic Bank PJSC acting as Receiving Bank / DFM presents you with the opportunity to subscribe to the Parkin Company PJSC (Parkin) UAE Public Offering (IPO) on the Dubai Financial Market (DFM).

Subscriptions will open on 05 March 2024.

Parkin is the exclusive public parking operator in Dubai with a natural dominant position in Dubai’s parking market. With a track record spanning almost three decades, Parkin operates technologically advanced, digitally enabled parking facilities and services at extensive and strategic locations across Dubai, providing a superior customer experience.

• Parkin is a critical infrastructure and parking activities provider in a city where car penetration is extremely high and more than 61% of Dubai’s commuters use private cars.
• Parkin has a c. 30-year track record and is the dominant provider of parking services in Dubai holding a 100% share in the paid public parking market and 91% in the overall paid on-street and off-street parking market (excluding private communities).
• Parkin is the 3rd IPO from the RTA, following on the successes of Salik and Dubai Taxi Company.
• Parkin's robust business model is underpinned by a 49-year concession agreement with RTA, which ensures exclusivity in Dubai's public parking landscape.
• Parkin has a strong relationship with RTA and operates under a well-defined regulatory framework offering long-term visibility, resilient revenues and cash flows, and an inflation-protection mechanism.
• Parkin’s business model is capex-light in nature, with robust margins and cash conversion, marked by a 14% revenue growth from 2022 to AED 779 million in 2023, a Pro Forma EBITDA Margin of 57%, and 99% cash conversion, supporting a highly attractive target dividend payout ratio of the higher of (i) 100% of profit for the year; and (ii) free cash flow to equity, subject to distributable reserves requirements.
• Parkin’s growth is underpinned by Dubai’s ambitious economic plans and anticipated population growth with the demand for public parking expected to be more than 60% higher over the next ten years.
• Parkin foresees substantial growth in expanding existing public parking and developing areas, collaborating with private developers, optimising its tariff and increasing digitalisation.
• Parkin's enforcement framework minimises revenue leakage, with ongoing investment in technology, ensuring efficient inspection.
  
• Parkin’s ESG strategy is aligned with that of RTA and the wider sustainability ambitions of the Emirate of Dubai, with a commitment to achieve net zero operations by 2050.

Important Dates to Remember

To learn more about the IPO, visit Parkin’s dedicated IPO microsite – www.parkin.ae/parkin-ipo

Disclaimer: This announcement has not been reviewed or approved by the SCA or any regulator in the UAE or elsewhere, does not form part of the prospectus and is not an offer of securities.