Dubai Parks and Resorts to list on December 10

04/12/2014 02:29 AST

Dubai Parks and Resorts, a unit of government-owned Meraas Holding, will list on December 10 on the Dubai Financial Market after completing its Dh2.5 billion Initial Public Offering (IPO). The company sold 40 per cent stake at Dh1 each, out of which 60 per cent was sold to institutional investors, and the remaining 40 per cent to retail.

“The strong response we have seen from retail investors to our IPO is a testament to the ambition of what we are building: a premier year-round global entertainment destination which will attract visitors from around the world to Dubai,” Raed Al Nuaimi, CEO of Dubai Parks and Resorts said.

The retail portion was oversubscribed multiple times, the company said in a statement. “The opening would be very very strong. Investors, who didn’t get the stock allocation, would buy the stock on the day of listing to get an exposure to the leisure market,” Sebastien Henin, head of asset management at The National Investor said. Dubai’s benchmark share index is among the best performing globally after rising 30 per cent this year, prompting share sales by companies such as Emaar Properties PJSC, which offered stock in a malls unit that operates one of the largest shopping centres in the world.

Separately, on November 11, the company said Goldman Sachs Group arranged a Dh4.2 billion loan to fund the development of the theme park.

The deal was underwritten by the New York-based bank, Abu Dhabi Commercial Bank PJSC, Commercial Bank International PSC, Emirates NBD PJSC, and Noor Bank.

The first phase of Dubai Parks & Resorts project comprises three theme parks: Motiongate Dubai, Bollywood Parks Dubai, and Legoland Dubai. The project is due to be completed before the end of the third quarter of 2016, with 6.7 million visitors expected the following year, the company said.

The company is on track to complete the project by October 2016, and about 35 per cent of the infrastructure works is already complete.

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