Dubai Parks and Resorts, a subsidiary of top real estate investment company Meraas Holding, has launched its initial public offering (IPO) on the Dubai Financial Market with a total offer size of approximately Dh2.5 billion ($684 million).

The offering, which will comprise 2,528,731,083 ordinary shares, represents 40 per cent of Dubai Parks and Resorts’ post-offer issued share capital.  The shares will be priced at Dh1 ($0.272) per share, plus Dh0.01 per share in offer costs.

The IPO, when added to the ordinary shares to be applied for by Meraas Holding, will result in a total market capitalisation on listing of approximately Dh6.3 billion ($1.71 billion).

Dubai Parks and Resorts will be a multi-themed leisure and entertainment destination in Dubai, UAE, 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.

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.”

“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.  Three billion people live within a four-hour flight radius of Dubai which already offers complementary worldclass leisure and entertainment options,” he added.

“The UAE, the Middle East and North Africa (Mena) region and the Indian subcontinent are relatively underpenetrated in the theme park sector compared to other global markets,” Al Nuaimi continued.

“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 worldclass theme park destination,” he added.

Emirates Financial Services, Goldman Sachs International and HSBC Bank Middle East are acting as joint global coordinators and joint bookrunners, while EFG Hermes UAE is acting as joint bookrunner. Shuaa Capital is acting as co-manager. – TradeArabia News Service