Translated by Sama Marwan,
Today, EFG Hermes, the investment bank affiliated with EFG Hermes Group and a leading firm in the Middle East and North Africa, announced that its Promotion and Subscription Coverage sector has successfully completed its advisory services for the initial public offering (IPO) of Parkn, the largest provider of paid parking services in the Emirate of Dubai, with a value of $428.7 million on the Dubai Financial Market. EFG Hermes acted as the joint lead manager for this deal.
The subscription process saw Parkn offering 24.99% of its total issued capital by selling 749,700,000 shares at a price of AED 2.10 per share, resulting in a market capitalization of AED 6.3 billion (USD 1.72 billion).
It’s worth noting that the offering witnessed tremendous investor demand, with a subscription coverage rate of nearly 165 times the total shares offered, marking the largest ever primary IPO subscription in the history of the Dubai Financial Market. EFG Hermes alone covered the subscription 44.3 times.
Additionally, the company announced an increase in the number of shares allocated to individual investors by approximately 20% in response to strong demand during the order building phase.
The completion of Parkn’s IPO worth $428.7 million on the Dubai Financial Market.
In this context, Karim Jalal, Managing Director of Promotion and Subscription Coverage at EFG Hermes, one of the subsidiaries of EFG Hermes Group, expressed pride in the outstanding success achieved by Parkn’s IPO on the Dubai Financial Market. He highlighted that this IPO saw the largest ever demand for a primary public offering on the Dubai Financial Market, reflecting investors’ significant confidence in the Dubai market in general and the strong position of Parkn in particular.
Jalal emphasized that the success of this deal reflects EFG Hermes’ extensive experience in executing major strategic transactions. The company managed to cover the subscription in a few hours through a rapid and comprehensive order building process. He also praised the pivotal role played by the company in completing this landmark deal, which represents a milestone in the series of deals successfully completed by the company in the Gulf Cooperation Council markets. Notably, two global banks and four regional banks participated in this deal. Jalal pointed out that the extensive experience and continuous dedication of the team contributed to enhancing investor confidence in the tremendous growth prospects of Parkn.
It’s worth mentioning that Parkn is the largest provider of paid parking services in Dubai under an exclusive franchise to operate all types of public paid parking and multi-level parking buildings within the United Arab Emirates. The company has a track record of providing excellent services to customers for nearly three decades, currently operating approximately 197,000 paid parking spaces in various strategic locations in the Emirate of Dubai.
This deal follows several prominent deals successfully completed by the company in the Gulf Cooperation Council markets in previous years. EFG Hermes provided advisory services for eight IPOs in 2023 alone, including the recent success in providing advisory services for the IPO of Dubai Taxi Corporation on the Dubai Financial Market (DFM) and the deal for Okyo Gas Networks on the Muscat Securities Market (MSX), the largest deal in the Sultanate of Oman in over 20 years. The company also completed its advisory services for the IPO of Adise Holding in Saudi Arabia’s Tadawul, in addition to completing the IPOs of ADNOC Distribution and ADNOC Gas PLC on the Abu Dhabi Securities Exchange (ADX) earlier in the year. The company also succeeded earlier in the year in completing the IPO of Lumi Leasing in Tadawul, and Abrag Energy Services on the Muscat Securities Market (MSX), in addition to completing the IPO of Al Ansari Financial Services on the Dubai Financial Market (DFM).”
