8th Nov 2013 08:49
LONDON (Alliance News) - Merlin Entertainments PLC said Friday its initial public offering of shares has been priced at 315 pence per share, giving the theme-park operator a market capitalisation of GBP3.19 billion. In early trade Friday, the newly listed shares were trading at 343.5 pence, up 9.0% from the IPO price and 5.7% from their opening level.
The offer of 303.8 million shares, excluding over-allotment arrangements, represents 30% of the company, above the 20% initially targeted.
Merlin said 87.5% of the offer was allocated to institutional investors, while 12.5% went to retail investors. It said retail investors who applied for the minimum of GBP1,000 of shares have been allocated the full amount - 317 shares, corresponding to GBP998.55. Those who applied for more shares were allocated the minimum, plus 55% of the excess to a maximum of 8,872 shares.
"We are delighted with the strong response from both institutions and retail shareholders to our offer," said Chief Executive Officer Nick Varney in a statement.
Merlin owns attractions such as the London Eye and Madame Tussauds, as well as the Alton Towers theme park in the Midlands. The GBP957 million raised by the IPO will be used by private equity owners Blackstone and CVC Capital to pay down Merlin's debt.
Following the offer, 29.9% of Merlin is held by KIRKBI A/S, the holding and investment company of the Kirk Kristiansen family. Blackstone holds 22.6% and CVC 13.1%. Management holds 4.4%.
By Tom Waite; [email protected]; @thomaslwaite
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