Parkin Company, the largest provider of paid parking facilities and services in Dubai, has announced its intention to proceed with an initial public offering (IPO) next month and to list its ordinary shares for trading on the Dubai Financial Market (DFM) in the emirate's first privatisation deal this year. 

 

Under this deal, Dubai government will be selling a total of 749,700,000 shares (representing 24.99% stake) in Parkin at a nominal value of AED 0.02 each for the IPO.

 

All shares to be offered are existing shares held by the Dubai Investment Fund which 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 March 5 and is expected to close on March 12 for UAE retail investors and on March 13 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.

 

According to Parkin, the share capital of the company, as at the date of the listing has been set at AED60 million divided into 3,000,000,000 shares paid-in-full, with the nominal value of each share being AED 0.02.

 

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.

 

On the upcoming IPO, Chairman Ahmed Hashem Bahrozyan said: "It 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."

 

CEO Mohamed Al Ali said: "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," he added.-TradeArabia News Service