Dubai (Etihad)
Parkin, the largest provider of paid parking facilities and services in Dubai, announced its intention to proceed with an initial public offering of a portion of its ordinary shares and list it for trading on the Dubai Financial Market.
The company said, in a statement today, that it will offer 749.7 million shares with a nominal value of 0.02 dirhams per share, representing 24.99% of the total shares issued in the company’s capital.
All shares to be offered will be current shares owned by Dubai Investments Fund (the selling shareholder), which reserves the right to amend the size of the offering at any time before the end of the subscription period at its absolute discretion, in line with applicable laws, and after obtaining the approval of the Securities and Commodities Authority, The subscription percentage of subscribers in the second tranche should not be less than 60%.
The offering will be made available to individual subscribers in the UAE and other investors as part of the offering intended for individuals in the UAE, as well as to professional investors outside the United States, including the UAE, as part of the qualified investor subscription. The subscription period begins next Tuesday, March 5, and is expected to end on the 12th of the same month for individual investors in the United Arab Emirates, and on Wednesday, March 13 for qualified investors.
The offering and listing acceptance processes are currently expected to be completed in March 2024, based on market conditions, and after obtaining the relevant regulatory approvals in the UAE, including approval for listing and trading on the Dubai Financial Market.
The Internal Sharia Supervision Committee of Emirates NBD Bank issued a statement confirming that the offering is compatible with the principles and provisions of Islamic Sharia. Investors must take the necessary due diligence measures to ensure that the offering is compatible with Islamic Sharia in order to achieve their own goals.
The company's capital, as of the listing date, will be 60 million dirhams, divided into 3 billion fully paid shares, with the nominal value of each share being 0.02 dirhams.
After the offering is completed, the company intends to distribute semi-annual dividends to its shareholders in the months of April and October, taking into account the expectations of distributing the first batch of dividends in October 2024 for the first half of 2024, with investors purchasing shares eligible to receive the full dividends for the first half. From 2024.
For the full fiscal year 2024 and beyond, the minimum dividend distribution will be the highest of two options, the first of which is 100% of annual profits, and the second of which is free cash flow to equity, taking into account distributable reserve requirements.
This dividend distribution policy is subject to the Board of Directors’ considerations regarding the cash management requirements of the company’s business in the context of covering operating expenses, financing costs, capital expenditures, and expected investments.
The company expected that the Board of Directors would take into account market changes and the current operating environment in the company's markets, as well as the company's business and growth opportunities from the perspective of the Board of Directors.
Ahmed Hashem Bahrozyan, Chairman of Parkin’s Board of Directors, said: “Under its wise leadership, Dubai has become one of the leading global destinations in the fields of business, innovation and lifestyles, and the initial public offering will enable us to complete and accelerate our path towards achieving these aspirations and stimulating the future success of the emirate, in parallel with the continued growth of the economy.” And the number of residents of the city, our company will grow, and that is why I am confident in Parkin’s success and its ability to achieve its ambition of becoming one of the most important providers of parking services in the world.”
For his part, Mohammed Abdullah Al Ali, CEO of Parkin, said: “Based on its pivotal role in enhancing the mobility system in Dubai today and in the future, Parkin will work to align its business plans with the city’s ambitious growth plans. The pioneering technologies that the company adopts constitute a “In addition to its strong digital infrastructure and experienced management team, it is the cornerstone of our solutions to provide seamless, sustainable and innovative services that enrich the world-class mobility experience in Dubai.”
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