Parkin Company PJSC’s IPO distinguished itself through exceptional execution, well-calibrated valuation and outstanding post-listing performance – earning it the title of Middle East and North Africa’s best IPO. While other listings may have raised more capital, none matched Parkin’s combination of investor targeting, structural innovation and lasting market impact.
As Dubai’s exclusive paid parking operator, Parkin plays a critical role in the emirate’s smart mobility and urban infrastructure strategy. Its March 2024 listing underscored Dubai’s commitment to bringing essential city services to market under its government-backed IPO programme, following on from earlier deals such as road toll operator Salik and Dubai Taxi Company.
Demand for the fully marketed offering was noteworthy. The order book was covered within hours of launch and ultimately oversubscribed by 165 times – the highest oversubscription ever recorded on the Dubai Financial Market (DFM). Priced at the top of the indicated range (Dh2.10 ($0.57) per share), the offering raised Dh1.57 billion with a 25% free float and a high-quality, long-term shareholder base. Emirates NBD Capital, Goldman Sachs and HSBC acted as joint global coordinators, while Rothschild served as independent financial adviser.
Notably, the transaction introduced DFM’s first-ever post-listing price stabilisation mechanism – a structural innovation that added reassurance during the early days of trading.
The IPO’s success reflected not just technical strength but also a clear understanding of investor expectations. A record 63,000 retail investors participated in the deal, following an upsizing of the retail tranche from 10% to 12%. Meanwhile, 25% of the offer was allocated to international investors outside the UAE and Gulf Cooperation Council region, including sovereign wealth funds, long-only institutions, hedge funds and global asset managers, underlining global appetite for Dubai’s infrastructure equity stories.
At the heart of the equity case was Parkin’s concession-based operating model, offering investors visibility on long-term cash flows. The company benefits from a 49-year exclusive concession to operate paid public parking in Dubai, with minimal capital expenditure requirements and inflation-linked mechanisms built into its revenue model. Parkin’s dividend distribution policy was clearly communicated during the IPO process, with the company expecting to pay the higher of 100% of net profits or free cash flow to equity from FY 2024 onwards, subject to distributable reserves. Dividends will be paid on a semi-annual basis, with distributions made in October and April.
Parkin’s IPO stands out as a model transaction – delivering strategic impact, innovation in structure and tangible investor value
Perhaps most impressive was the stock’s post-listing performance. Parkin’s shares surged 35% on day one, and ended the year up 132%, making it the top-performing stock on the DFM in 2024. This exceptional secondary performance was driven by continued institutional demand and investor confidence in the company’s governance, market positioning and yield potential. “We under-promised and over-delivered. That, along with a unique equity story blending low capex intensity with utility-like cash-flow predictability and strong underlying business growth, is why our share price has outperformed. Parkin has many of the attributes you would typically find in an income stock, yet the share price performance reflects that of a growth company,” says Max Zaltsman, head of investor relations at Parkin.
As Dubai works to deepen and diversify its capital markets, Parkin’s IPO stands out as a model transaction – delivering strategic impact, innovation in structure and tangible investor value. It has not only advanced the emirate’s IPO programme but also raised the bar for how infrastructure assets can be successfully brought to market.
Runner-up: OQ Exploration & Production
The $2 billion IPO of OQ Exploration & Production (E&P) marked a key milestone in Oman’s economic reform and state divestment agenda under Vision 2040. The Shariah-compliant offering, with a 25% free float and 24% foreign investor participation, drew significant attention to the potential of Omani equity stories. Backed by robust government support and a strategically designed deal structure, OQ E&P’s listing was one of the most impactful of 2024 – narrowly missing out on the top prize.
