Parkin Company Set For Initial Public Offering On Dubai Financial Market In March 2024

Parkin Company PJSC, Dubai's premier provider of paid parking facilities, has officially announced its plans for an initial public offering (IPO) and aims to list its ordinary shares on the Dubai Financial Market (DFM). The company is set to offer 749,700,000 shares, each with a nominal value of AED 0.02, accounting for 24.99% of its issued share capital. This move comes as the Dubai Investment Fund, currently holding these shares, opts to potentially adjust the offering size before the subscription period concludes, adhering to legal and regulatory approvals.

The IPO is structured to cater to UAE Retail Investors through the UAE Retail Offering and to professional investors outside the United States, including those in the UAE, via the Qualified Investor Offering. The subscription window is scheduled from 5th March 2024 to 12th March 2024 for UAE Retail Investors and will extend until 13th March 2024 for Qualified Investors. Furthermore, the Emirates NBD Bank PJSC’s Internal Sharia Supervision Committee has validated the offering's compliance with Shariah principles, advising investors to conduct their due diligence.

Expected in March 2024, the admission of shares to DFM trading marks a significant milestone for Parkin. The company's share capital at listing stands at AED 60,000,000, divided into 3,000,000,000 fully paid shares with a nominal value of AED 0.02 each. Post-IPO, Parkin intends to implement a semi-annual dividend policy in April and October, starting with its first payment in October 2024 for the initial half of the year. This policy anticipates a minimum dividend payout of either 100 percent of yearly profit or free cash flow to equity, contingent on distributable reserves requirements.

Ahmed Hashem Bahrozyan, Chairman of Parkin’s Board of Directors, expressed confidence in leveraging Dubai's dynamic growth trajectory through this IPO. He highlighted Dubai's global stature in business and innovation as pivotal to Parkin's expansion strategy. Mohamed Al Ali, CEO of Parkin, echoed this sentiment by emphasizing the company's central role in Dubai’s transport ecosystem and its commitment to delivering top-tier mobility solutions.

With a focus on sustainable and innovative services powered by leading technology and an experienced management team, Parkin is poised for significant growth. This IPO not only underscores Parkin's ambition to enhance Dubai’s transport infrastructure but also its dedication to stakeholder value and industry leadership.

With inputs from WAM