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THEME PARKS PROJECT

Dubai Parks and Resorts ... major tourist attractions planned.

Dubai Parks and Resorts plans $689m IPO

DUBAI, November 11, 2014

Dubai Parks and Resorts, part of the UAE emirate's Meraas investment group, will offer 40 per cent of its shares to the public in a Dh2.53 billion ($689 million) initial public offer (IPO), the company said on Tuesday.

The company will offer 2.53 billion shares at a price of Dh1 ($0.27) each, in an offer that will run from November 17 to 30. Five per cent of the offer will be reserved for the national government's Emirates Investment Authority.

The total IPO amount, when added to the ordinary shares to be applied for by Meraas Holding, will result in a market capitalisation on listing of Dh6.3 billion ($1.7 billion), said a statement from Dubai Parks and Resorts.

A multi-themed leisure and entertainment destination, Dubai Parks and Resorts will offer 73 attractions in three separate theme parks, a four-star resort hotel (to be known as Hotel Lapita), and Riverpark, a complementary and centrally located retail, dining and entertainment district connecting the three theme parks and hotel.

The project, to be developed on a sprawling 16-million-sq-ft area, is likely to be completed by the end of the third quarter of 2016.
 
The three theme parks will comprise Motiongate, a Hollywood-inspired theme park concept based on major DreamWorks Animation and Sony Pictures Consumer Products movies; Legoland Dubai, the first theme park of the brand in the Middle East; and Bollywood Parks, a first-of-its-kind entertainment destination that will showcase the authentic Indian movie experience.

For the IPO, Emirates Financial Services, Goldman Sachs International and HSBC Bank Middle East are acting as the joint global co-ordinators and bookrunners, while EFG Hermes UAE will be the joint bookrunner.

Shuaa Capital is acting as co-manager (together with the joint bookrunners).

Commenting on the move, Raed Al Nuaimi, the chief executive of Dubai Parks and Resorts, said: "We are delighted to announce the launch of the Dubai Parks and Resorts IPO, and to give investors the opportunity to become shareholders in one of the region’s most exciting development projects."

With Dubai’s status as a leading global tourist destination continuing to grow, there exists an exciting opportunity to enhance the emirate’s leisure, entertainment and retail offering with the construction of Dubai Parks and Resorts, remarked Al Nuaimi.

According to him, the project will benefit from a prime and easily accessible location, partnerships with world-renowned brands, industry leading operators, and a wide range of attractions catering to visitors of all ages, both from the Middle East and beyond.

"With the early stages of development already under way, we are aiming to provide investors with access to a high-growth, high-return, family entertainment business which will become one of the cornerstones of the Dubai entertainment landscape," he added.

Abdulla Al Habbai, the chairman of Meraas Holding, said: "This is an exciting day both for Dubai Parks and Resorts and for us. The listing of Dubai Parks and Resorts on Dubai Financial Market (DFM) will mark an important milestone in the development of the project and brings us one step closer to our vision of becoming a premier year-round global entertainment destination."

"Against a background of strong macroeconomic fundamentals and favourable demographic trends, we see Dubai Parks and Resorts as well positioned to meet increasing visitor demand, both locally and regionally, and should be able to capitalise on the projected growth in tourists to Dubai and the Middle East," he added.-Reuters and TradeArabia News Service




Tags: IPO | Meraas | Dubai Parks & Resorts |

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