Meraas planning IPO of Dubai theme park unit
Meraas Holding subsidiary Dubai Parks and Resorts is set to launch an initial public offering on the Dubai Financial Market, in a move set to value the company at approximately AED6.3 billion (US $1.7 billion).
Currently under development in Jebel Ali, Dubai Parks and Resorts will be a multi-themed leisure and entertainment destination that will offer 73 attractions in three separate theme parks, as well as a four-star hotel and a retail, dining and entertainment district.
The offering for the company will comprise 2,528,731,083 ordinary shares, representing 40% of its post-offer issued share capital, with an offer price of AED1 per share.
Dubai Parks and Resorts CEO Raed Al Nuaimi said: “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.
“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 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.”
The first phase of the Dubai Parks and Resorts is expected to be completed before the end of the third quarter of 2016, with three theme parks: motiongate, a Hollywood-inspired theme park based on major Dreamworks and Sony Pictures movies; the first Legoland theme park in the Middle East; and Bollywood Parks, showcasing the Bollywood movie experience.
Meanwhile, Marriott International will operated the 503-key, Polynesian-themed Lapita Hotel as part of its Autograph Collection.
Riverpark will be the project’s centrally located retail, dining and entertainment district connecting the three theme parks and hotel. It will be set in approximately 16 million square feet of land.
“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,” said Meraas Holding chairman His Excellency Abdulla Al Habbai.
“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.”