Dubai Parks and Resorts to launch IPO

Shares for Dubai’s upcoming theme parks project to be listed on DFM

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Dubai Parks and Resorts PJSC, a subsidiary of Meraas Holding, has announced plans to launch an Initial Public Offering (IPO), intending to list shares on the Dubai Financial Market (DFM).

The offering will represent 40% of the company’s post-offer issued share capital, comprising 2,528,731,083 ordinary shares, Dubai Parks and Resorts said in a statement.

The offer price is AED 1.00 per share plus AED 0.01 per share in offer costs, resulting in a total offer size of about $680.6 million (AED2.5 billion).

“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,” said Raed Al Nuaimi, CEO of Dubai Parks and Resorts.

“With the early stages of development already underway, 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,” Al Nuaimi added.

“This is an exciting day both for Dubai Parks and Resorts and for Meraas Holding,” said Abdulla Al Habbai, Chairman of Meraas Holding. “The listing of Dubai Parks and Resorts on 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.”

According to the statement, Meraas Holding’s previous funding of development costs, land contribution and initial capital injection prior to the IPO, together with net proceeds from the offering, constitute the equity component needed for financing the mega-development.

Additionally, Dubai Parks and Resorts has also obtained debt financing, and potential cost overruns will be funded by Meraas through interest-free shareholder loans.

The Dubai Parks and Resorts project comprises of three theme parks, a four star resort hotel and a retail, dining and entertainment district connecting the parks and hotel. The parks include the Hollywood-inspired motiongate™, a LEGOLAND theme park, and the Bollywood Parks.

The leisure and entertainment destination is expected to be complete before the third quarter of 2016, and 6.7 million visitors are anticipated in its first full year of operation.


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