Parkin Company, making its highly anticipated debut on the Dubai Financial Markets (DFM) on Thursday, saw its shares closing a robust 35 percent higher at Dh2.84 per share. This impressive performance marked the company as the first in the UAE to go public in 2024, signaling a buoyant start for the region’s stock market.
The company’s shares witnessed a remarkable surge, jumping over 30 percent within the first minute of market opening, propelled by robust investor demand. At one point during the day, the shares peaked at a 39 percent increase, reaching Dh2.92, before settling at Dh2.84, up Dh0.74 per share. The trading day was marked by high activity, with 178.12 million shares worth Dh487.02 million exchanging hands.
The initial public offering (IPO) price for Parkin was set at Dh2.10, and it drew an extraordinary response from investors, being oversubscribed 165 times with a record demand of Dh259 billion. This level of oversubscription was unprecedented on the Dubai Financial Market, highlighting the strong investor confidence in Parkin Company.
Hani Abuagla, Senior Market Analyst at XTB Mena, expressed optimism about Parkin’s future performance. He noted that the overwhelming response to the IPO and the surplus demand could potentially drive further growth in the stock market. Abuagla emphasized the solid profiles of companies offered in recent Dubai and UAE IPOs, with Parkin showcasing robust financial health, growing revenues and profits, and positive prospects tied to the development of Dubai.
Additionally, Parkin’s recent announcements of agreements with major developers in Dubai to manage their parking lots and an expected 60 percent growth over the next decade have positively influenced investor sentiments.
Saif Khamis Abdallah Al Maqbali, CEO of Smart Trading Institute, observed that while the Dubai stock market experienced some volatility on Thursday, it largely remained within a range. Parkin’s strong debut, marked by a 30 percent jump, attracted significant investor interest following the oversubscribed IPO.
Parkin will be the largest provider of paid parking facilities and services in Dubai, operating approximately 197,000 paid parking spaces across strategic locations in the emirate. The successful IPO and the impressive debut on DFM underscore Parkin Company’s strong market position and potential for continued growth in the UAE’s vibrant economy.
