Published: November 12, 2014
State-owned company aims to raise US$689mn to fund theme park development.
Dubai Parks and Resorts, which is owned by state-backed investment group Meraas, plans to raise US$689mn through an IPO on the Dubai Financial Market.
The company will sell 2.53bn shares, equivalent to 40% of its total, for 1 dirham each. The sale will run from November 17 to 30. Emirates Financial Services, Goldman Sachs and HSBC are joint global co-ordinators. EFG Hermes and SHUAA Capital are also working on the transaction.
Dubai Parks and Resorts is working on a 1.5mn-square-metre facility that will accommodate three theme parks: Motiongate, which is based on DreamWorks Animation and Sony Pictures films; Legoland Dubai, and Bollywood Parks. The project will contribute significantly to Dubai’s aim of doubling its annual tourist numbers from 10mn in 2012 to 20mn by 2020. The project is expected to be completed by October 2016.
The project will cost an estimated AED10.5bn, with AED4.2bn arranged by Goldman Sachs and AED6.3bn of equity (including the IPO funds) arranged by Meraas.