Dubai's Parkin is all set to pay first dividend, totaling Dh198.77 million
This is DFM listed company's first payout after successful IPO
Dubai: Dubai’s Parkin is sending out dividend payments of Dh198.77 million to shareholders as H1-2024 dividend. This is also the first payout since the company’s DFM listing earlier in the year, and works out to a handsome 6.63 fils a share.
October 10 has been set as record date for shareholders to get the payment.
At the time of the March IPO, the RTA owned company said it would distribute the higher of net income or free cashflow-to-equity. In H1-2024, Parkin generated a net income of Dh198.77 million while the free cashflow-to-equity came to Dh135.64 million. (Free cashflow-to-equity is the available funds for shareholders after all expenses, reinvestment, and debt are paid off.)
Distribution of a dividend is reflects the 'company’s expectation of strong cashflow generation and expected long-term earnings potential'. The plan is to pay shareholders semi-annually in April and October each year.
"Parkin’s maiden interim dividend reflects both our strong financial performance and continued confidence in the company’s future growth and cash generation prospects," said Mohamed Al Ali, CEO.
Dividend distribution will be reviewed annually by the Parkin Board of Directors and the general assembly, taking into account the 'company’s cash management needs for operating expenses, finance costs and planned capital expenditures and investments'.
"The Board will consider market conditions, the current operating environment and future outlook," it added in a statement.
More to follow...