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Parkin Company, Dubai's parking space operator, has announced plans for an IPO, floating 24.99%. Subscriptions will open on March 5 and will be on until March 12.
Parkin marks UAE’s first IPO this year. The offer price range will be announced on March 5.
"The sale of 749,700,000 ordinary shares with nominal value of AED 0.02, each representing 24.99% of the total issued shares in the company will be sold by the company's sole shareholder, mainly, the Dubai Investment Fund," according to a prospectus issued by the company.
Retail investors can pick up 10% of the stock float and guaranteed to receive a minimum of 2,000 shares apiece.
Parkin is the largest provider of paid parking facilities and services in Dubai, accounting for more than 90% of Dubai's on-and-off-street paid parking market.
Emirates NBD Bank is the lead receiving bank of the IPO.
Key highlights of the offering
1) 749,700,000 shares each with a nominal value of AED 0.02 will be made available in the Offering, representing 24.99% of Parkin’s total issued share capital.
2) 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 (SCA).
3)The Offering will be made available to UAE retail investors as well as professional investors outside the US, including the UAE, as part of the Qualified Investor Offering (as defined below).
4) The subscription period will open on Tuesday, 5 March 2024 and is expected to close on Tuesday, 12 March 2024 for UAE Retail Investors and on Wednesday, 13 March 2024 for qualified investors.
5) Admission of Shares to trading on DFM is expected to take place in March 2024.
Capital structure and dividend policy
1) The share capital of the company, as at the date of 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 AED 0.02
2) 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
3) For full fiscal year 2024 and thereafter, the Parkin expects to pay a minimum dividend payout of the higher of: (1) 100% of profit for the year; and (2) free cash flow to equity, subject to distributable reserves requirements
(Reporting by Seban Scaria; Editing by Daniel Luiz)
