Parkin Company announces intention to float on Dubai Financial Market
- 27 Feb 2024
Parkin Company PJSC, the largest provider of paid parking facilities and services in Dubai, on Tuesday announced its intention to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
A total of 749,700,000 shares with a nominal value of Dh0.02 each will be offered in the upcoming Parkin Offering, representing 24.99% of the company's issued share capital.
All shares to be offered are existing shares held by the Dubai Investment Fund who reserves the right to amend the size of the Offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the Securities & Commodities Authority.
The Offering will be made available to the UAE Retail Investors and other investors as part of the UAE Retail Offering as well as to professional investors outside the United States, including the UAE, as part of the Qualified Investor Offering.
The subscription period will open on Tuesday, 5th March 2024 and is expected to close on Tuesday, 12th March 2024 for UAE Retail Investors and on Wednesday, 13th March 2024 for Qualified Investors.
The Internal Sharia Supervision Committee of Emirates NBD Bank PJSC has issued a Shariah pronouncement confirming that, in its view, the offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the offering is Shariah compliant for their own purposes.
Admission of Shares to trading on DFM is expected to take place in March 2024.
Capital Structure and Dividend Policy:
The share capital of the company, as at the date of the listing (the "Listing"), has been set at AED 60,000,000, divided into 3,000,000,000 shares paid-in-full, with the nominal value of each share being Dh0.02.
Following the Offering, the company intends to pay a semi-annual dividend in April and October, with a first payment expected in October 2024 in respect of the full first half of 2024, with investors purchasing shares in the offering eligible for the full dividend for the first half of 2024.
For full fiscal year 2024 and thereafter, the company expects to pay a minimum dividend payout of the higher of: (i) 100 percent of profit for the year; and (ii) free cash flow to equity, subject to distributable reserves requirements.
This dividend policy is subject to consideration by the Board of Directors (the "Board”) of the cash management requirements of the Company’s business for operating expenses, finance costs and anticipated capital expenditures and investments.
In addition, the company expects that the board will also consider market conditions, the then current operating environment in the company’s markets, and the Board’s outlook for the company’s business and growth opportunities.
Ahmed Hashem Bahrozyan, Chairman of Parkin’s Board of Directors, said, "Guided by our visionary leadership, Dubai has become one of the world’s leading cities for business, lifestyle, and innovation. Parkin’s IPO will enable us to build on and accelerate our progress in supporting these ambitions, driving the Emirate’s future success. As Dubai’s population and economy continue to grow, our company will grow with it. As a result, I am confident in Parkin’s future opportunities, delivering on our vision to become one of the leading parking providers in the world.”
Mohamed Al Ali, CEO of Parkin, added, "With its systemic role in Dubai’s transport ecosystem, now and in the future, Parkin will operate at the centre of the city’s exciting and ambitious growth plans. Powered by market leading technology with robust digital infrastructure and a highly experienced management team, we will continue to enhance and expand our ability to provide seamless, sustainable, and innovative mobility solutions and services to make every journey in Dubai a world-class experience for decades to come. As we begin this new chapter, we remain steadfast in our commitment to drive growth, delivering value to our stakeholders, and shaping the future of our industry.”
WAM