Analysts predict that Dubai's recently established Parkin, which will develop, plan, build, run, and oversee both public and private parking around the emirate, would likely choose to go public through an initial public offering (IPO). This would attract "substantial attention and interest" from potential investors.
The establishment of Parkin may be a step towards getting ready for an IPO, according to Hani Abuagla, senior market analyst at XTB Mena. This is because the Dubai government has shown a strong desire to grow the local stock market in terms of diversity, liquidity, and trading volume.
Under a franchise agreement, Parkin will receive certain responsibilities from the Road and Transport Authority (RTA) for both private and public parking. People can subscribe to public parking spots and reserve parking spaces in accordance with the conditions of the franchise contract by obtaining licences from the corporation.
Additionally, Parkin plans to invest in related company ventures. The law allows anyone to subscribe publicly or privately for shares in the corporation. The legislation states that when Parkin sells shares to the public, the Government of Dubai's proportional shareholding in the firm cannot decrease below 60% of its capital.
Institutional and retail investors responded favourably to both the Salik and Dubai Taxi initial public offerings (IPOs), which resulted in significant oversubscription.
