Dubai Parks and Resorts PJSC (under incorporation) (“Dubai Parks and Resorts”), a subsidiary of Meraas Holding LLC, announced today the subscription levels for both the Qualified Institutional Tranche and the UAE tranche of its AED 2.5 billion Initial Public Offering (“IPO”).
The Qualified Institutional tranche, 60% of the shares on offer, was over-subscribed 65 times at the offer price of AED 1.00 per share (plus expenses of AED 0.01), representing approximately AED 100 billion (US$ 27 billion) of investor demand for this tranche. The Qualified Institutional tranche attracted a wide range of regional and global institutional investors, family offices, as well as sovereign wealth funds including the Kuwait Investment Authority and the Qatar Investment Authority.
The UAE tranche, comprising 40% of the IPO at the offer price of AED 1.00 per share (plus expenses of AED 0.01), was over-subscribed 10 times, representing AED 10.9 billion (US$ 2.9 billion) of investor demand. (Individuals were over-subscribed by 1.63 times and high-net worth individuals and institutions were over-subscribed 13.92 times).
Dubai Parks and Resorts’ shares are expected to be listed on the Dubai Financial Market on 10 December 2014.
Raed Al Nuaimi, CEO of Dubai Parks and Resorts said, “We have had a great reaction to our IPO in which strategically retained a specific tranche for retail investors so that they received a favourable and higher allocation, ensuring that more people could share in the growth of Dubai Parks and Resorts. We are building an ambitious project which will become an important part ofDubai’s 2020 tourist strategy. Dubai Parks and Resorts will be a premier year-round global entertainment destination which will attract visitors from around the world to Dubai. We believeDubai Parks and Resorts has the potential to generate significant value over the long-term. The strong response we have seen from both institutional and retail investors validates the project’s future prospects.”