Parkin Company, a leading operator in the parking space sector, has unveiled plans to go public, marking a significant milestone as the UAE’s inaugural Initial Public Offering (IPO) of 2024. The company is set to offer 24.99% of its shares to the public, with subscriptions slated to commence on March 5 and conclude on March 12.
Dubai Parkin IPO
According to details outlined in the prospectus released by the company, a total of 749,700,000 ordinary shares, each with a nominal value of Dhs0.02, will be divested by the sole shareholder, primarily the Dubai Investment Fund.
Retail investors keen on partaking in the IPO can secure up to 10% of the available stock float, with a minimum guaranteed allocation of 2,000 shares per investor.
Parkin holds a commanding presence in Dubai’s paid parking landscape, boasting a market share exceeding 90% in both on-street and off-street paid parking services.
Key aspects of Parkin’s IPO offering
Emirates NBD Bank has been appointed as the lead receiving bank overseeing the IPO proceedings.
Accessible Shares
Parkin is set to offer 749,700,000 shares, each valued at Dhs0.02, representing 24.99% of its total issued share capital, providing investors with a substantial opportunity to participate in the company’s growth.
Existing Holdings Offered
The shares being made available for purchase are part of the existing holdings of the Dubai Investment Fund. This allows the fund flexibility to adjust the offering size during the subscription period, ensuring compliance with regulatory standards while accommodating market demand.
Inclusive Offering
The IPO extends its accessibility to both UAE retail investors and qualified professional investors outside the US, facilitating a broad investor base and fostering diverse participation in Parkin’s growth trajectory.
Subscription Details
Interested investors can subscribe to the IPO starting from March 5, 2024, with the subscription period set to conclude on March 12, 2024, for UAE Retail Investors, and March 13, 2024, for qualified investors, providing ample time for investment decisions.
Anticipated Market Entry
Parkin anticipates the admission of its shares to trading on the Dubai Financial Market (DFM) in March 2024, marking a significant milestone in the company’s journey towards broader market engagement and liquidity.
Capital structure and dividend policy
Share Capital Overview: With a share capital of Dhs60,000,000 at the time of listing, Parkin’s capital structure comprises 3,000,000,000 fully paid-up shares, each valued at Dhs0.02, reflecting a robust foundation for future growth and expansion.
Dividend Initiatives: Post-offering, Parkin aims to implement a semi-annual dividend payout structure, with the inaugural payment expected in October 2024, covering the initial half of the fiscal year. This dividend policy underscores the company’s commitment to delivering value to its shareholders.
Forward strategy: Parkin’s commitment to maintaining a minimum dividend payout reflects its strategic focus on ensuring shareholder participation in the company’s success, aligning with regulatory requirements and bolstering investor confidence in the company’s long-term prospects.
In conclusion, Parkin Company’s decision to go public with its IPO marks a significant event in the UAE’s financial landscape for 2024. With its offering of 24.99% of shares to the public and a strategic approach to inclusivity, Parkin aims to foster broad investor participation while maintaining flexibility in its offering size.
The company’s robust market presence and dividend initiatives further underscore its commitment to shareholder value and long-term growth. Anticipated market entry in March 2024 signals a pivotal moment in Parkin’s journey towards expanded market engagement and liquidity on the Dubai Financial Market (DFM).
tanvir@dubainewsweek.com
