Salik and Dubai Taxi Experts anticipate that Parkin, Dubai’s recently established company tasked with overseeing public and private parking, might pursue an Initial Public Offering (IPO), following in the footsteps of successful IPOs by Salik and Dubai Taxi.
“Strategic Move in Line with Dubai’s Market Development Goals”
Hani Abuagla, senior market analyst at XTB Mena, suggests that Parkin’s creation aligns with Dubai’s strategy to develop the local stock market. Analysts predict an IPO could attract substantial attention from investors, considering Dubai’s track record of oversubscribed offerings.
“Parkin Empowered for Independent Operations”: Salik and Dubai Taxi
His Highness Sheikh Mohammed bin Rashid Al Maktoum issued a law establishing Parkin, granting the company autonomy over its finances, administration, and legal matters. The Road and Transport Authority (RTA) is expected to delegate parking-related duties to Parkin under a franchise agreement.
“IPO Speculations and Potential Market Impact”
Vijay Valecha, CIO at Century Financial, asserts that while Parkin’s current shares are government-owned, an IPO is likely in the future, aligning with the Dubai government’s efforts to privatize assets and stimulate economic growth.
“Conditions for Going Public”
For Parkin to go public, it must maintain a minimum of 60% government ownership, as per the law. Factors influencing the timing of an IPO include financial performance, public demand, capital requirements, and regulatory approvals.
“Dubai’s Successful IPO Track Record”
Prior to Parkin, the government successfully launched IPOs for Salik and Dubai Taxi, witnessing strong responses from institutional and retail investors. Both offerings recorded massive oversubscriptions.
“Positive Outlook for Parkin’s Future IPO”
Valecha highlights the significant interest and success of Salik and Dubai Taxi IPOs, suggesting that Parkin’s future IPO could garner substantial attention, contributing to the stock market’s upward trajectory.
“Revenue Projections and Market Valuation”
Using a conservative approach, analysts estimate Parkin’s potential full-year revenue, considering parking charges and occupancy. Comparisons with Salik’s revenue suggest a valuation range of Dh650 million to Dh700 million for Parkin.
Conclusion: “Parkin’s Potential IPO as a Catalyst for Market Growth”
Analysts and experts foresee Parkin’s potential IPO as a significant move that could boost market capitalization, aligning with Dubai’s strategy to diversify and strengthen its stock market. The success of previous offerings sets a positive precedent for Parkin’s future in the IPO landscape.
Also Read
UAE Embarks on a New Era, Formally Joins BRICS to Enhance Global Engagement-1
“Anticipated Per Capita GDP in the UAE to Reach $52,407 in the Current Year”