Dubai, United Arab Emirates: Dubai property developer Meraas Holding has announced its intention to launch an initial public offering for its theme parks unit, Dubai Parks and Resorts, and to list the subsidiary on Dubai Financial Market. The developer hopes to raise USD 689 million by selling 40 percent of the unit to investors in an initial public offering later this month.
The total offer size of USD 689 million, when added to the ordinary shares to be applied for by Meraas Holding will result in a market capitalization on listing of approximately USD 1.71 billion.
The company will offer the shares at a price of USD 0.27 each, for a period running from November 17 to 30, 2014, the company said in statement issued today. Five percent of the offer will be reserved for the national government's Emirates Investment Authority.
The announcement comes as Dubai-listed stocks appear to have revived in recent months. Dubai’s market index more than doubled in value last year and has made further gains this year, prompting several new listings, including Emaar's successful listing of its Malls Group.
Dubai Parks and Resorts will be a multi-themed leisure and entertainment destination that will offer 73 attractions in three separate theme parks, a four star resort hotel called Lapita, and Riverpark, a complementary and centrally located retail, dining and entertainment district connecting the three theme parks and hotel.
It will be set in approximately 836,000 square meters of land. The project is anticipated to be completed before the end of the third quarter of 2016.