Meraas Holding eyes DFM listing, Dubai Parks and Resorts to launch an IPO
Dubai Parks and Resorts, a subsidiary of Meraas Holding LLC announced that it seeks to launch an Initial Public Offering and apply to list its ordinary shares on the Dubai Financial Market.
The company said on Tuesday that will offer 40 percent of its shares to the public in the AED2.53-bn or$689-million IPO at a price of AED 1.00 per share in an offer that will be open from November 17- 30. The company also revealed that five percent of the offer will be reserved for the government’s Emirates Investment Authority. Institutional Investors will get up to 60% of the shares.
“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, Chief Executive Officer of Dubai Parks and Resorts.
Financial activity in Dubai has got a new lease–in the backdrop of stock market rebounds and new IPO activity after the global financial crisis that helped Dubai’s market index almost double last year.
“This is an exciting day both for Dubai Parks and Resorts and for 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. 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,” said Abdulla Al Habbai, Chairman of Meraas Holding.
The money raised will be used to build a multi-themed leisure and entertainment destination complete with a shopping, dining and resort infrastructure.
Dubai Parks and Resorts, scheduled for a 2016 launch, will be set in about 16 million square feet of land. The company expects to touch a visitor rate of 6.7 million approximately in its first full year of operation i.e in 2017.
Dubai Parks and Resorts is in sync with Dubai Tourism’s Vision 2020 which targets an increase in tourist influx from 10 million to 20 million by 2020.
Interested investors can log into the company’s website — www.DPRIPO.com. The website will be operational from November 17 onwards.