- AED 2.5 billion Offering now open to investors
Dubai Parks and Resorts PJSC (under incorporation) (“Dubai Parks and Resorts” or the “Company”), a subsidiary of Meraas Holding LLC (“Meraas Holding”), today launched its Initial Public Offering (“IPO” or the “Offering”) on the Dubai Financial Market. The Offering, which will comprise 2,528,731,083 ordinary shares, represents 40 per cent. of the Company’s post-offer issued share capital. The shares will be priced at AED 1.00 per share, plus AED 0.01 per share in offer costs, inferring a total offer size of approximately AED 2.5 billion which, when added to the ordinary shares to be applied for by Meraas Holding, will result in a total market capitalisation on listing of approximately AED 6.3 billion.
Dubai Parks and Resorts will be a multi-themed leisure and entertainment destination comprising three separate theme parks: motiongate™, a Hollywood inspired theme park concept based on major DreamWorks and Sony Pictures movies; LEGOLAND® Dubai, the first LEGOLAND® theme park in the Middle East; and Bollywood Parks™, a first-of-its-kind entertainment destination that will showcase the authentic Bollywood movie experience.
The development will also host Hotel Lapita, a four star resort hotel which will be managed by a Marriott Corporation company, and Riverpark™, a complementary and centrally located retail, dining and entertainment district connecting the three theme parks and hotel. Strategically located close to the Palm Jebel Ali between Dubai and Abu Dhabi, the project is due for completion before the end of 2016, and the total estimated number of visits in the first full year of operation in 2017 is approximately 6.7 million.
Commenting on the IPO, Raed Al Nuaimi, Chief Executive Officer of Dubai Parks and Resorts, said, “The Middle East is forecast to be the fastest growing region for inbound tourism in the world, with visitor numbers nearly trebling to 149 million by 2030[1]. Dubai is ideally located to benefit from the growing level of tourism and is already the fifth most visited city in the world with 11.95 million visitors as of July 2014[2]. Three billion people live within a four hour flight radius of Dubai[3] which already offers complementary world class leisure and entertainment options.
“The United Arab Emirates, the MENA region and the Indian subcontinent are relatively underpenetrated in the theme park sector compared to other global markets. The region currently doesn’t offer an integrated multi-themed international theme park destination backed by a portfolio of world-leading leisure and entertainment brands. We see significant opportunity in creating a year-round global leisure and entertainment destination catering to tourists from the Middle East, Asia and globally. We are excited by the growth prospects of Dubai Parks and Resorts as our experienced management team build what will become a world class theme park destination.”
About the Offering:
The Offering comprises an offering of Shares (i) in the United Arab Emirates (A) to natural persons who are citizens of any country (with the exception of persons located in the United States as defined in the US Securities Act of 1933, as amended), (B) to juridical persons and (C) in accordance with the UAE Council of Ministers’ Resolution No. 8 of 2006, to the Emirates Investment Authority (together the “UAE Offer”) and (ii) outside the United States to institutional investors in reliance on Regulation S under the Securities Act (the “Qualified Institutional Offering”). Full details of the Offering will be included in a UAE Prospectus (in respect of the UAE Offer) and an International Offering Memorandum (in respect of the Qualified Institutional Offering), expected to be published in due course.
The UAE Offer will comprise a minimum of 35% of the Shares on offer in the Offering, to be allocated as follows:
(a) 10% to natural persons, with a minimum subscription application size of 5,000 Shares and a maximum application size of 4,999,999 Shares; and
(b) 25% to certain types of juridical persons and high net worth individuals, with a minimum subscription application size of 5,000,000 Shares.
In addition, the Emirates Investment Authority (the “EIA”) has the right to subscribe for 5% of the Shares in the Offering. If, however, the EIA decides not to subscribe, such Shares will be made available to natural persons on the basis described in (a) above.
Allocations pursuant to the UAE Offer will be carried out on a pro rata basis, subject to the EIA’s right to a 5% allocation.
The Qualified Institutional Offering will comprise up to 60% of the Shares on offer in the Offering, with a minimum subscription application size of 10,000,000 Shares. The allocation pursuant to the Qualified Institutional Offering will be determined at the discretion of the Company.
Offering Subscription:
Individual investors based in the UAE, who meet the eligibility requirements as set out in the UAE Prospectus, (available for download from www.dpripo.com and from the receiving banks listed below) are able to subscribe for the UAE Offer, which will be open for subscription from 17 November to 30 November 2014. There are three ways for investors to apply to the UAE Offer:
1) In person at Lead Receiving Bank Emirates NBD and the following Receiving Banks and Financial Institutions throughout the offer period: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates Islamic Bank, Finance House, Mashreqbank, Noor Bank and Union National Bank.
2) Online via the DFM eIPO platform, http://www.dfm.ae/misc/ipages/eipo.aspx provided a valid iVESTOR Card which is activated and provided sufficient funds is held. To obtain an iVESTOR card, please contact DFM Customer Services on +971 4 305 5555.
3) In the case of Emirates NBD and Emirates Islamic Bank customers, subscriptions can be made through Emirates NBD and Emirates Islamic Bank automated teller machines (ATMs), online and mobile banking services.
Further information on how individual investors can subscribe for the IPO can be found on the Dubai Parks and Resorts IPO website (www.dpripo.com).
