Merlin's unique business attracts investors in oversubscribed IPO - CEO

By Rizza Sta. Ana

Nov 08, 2013 08:33 AM EST

Merlin Entertainments Chief Executive Nick Varney told Reuters that the strong investor attraction in the company was due to the fact that the business itself was both unique and profitable.

Varney said, "People are looking at Merlin hopefully as something which has got that relatively unique combination of a resilient underlying business that is highly cash generative, with a strong brand portfolio that is providing a very strong growth story. That is in essence what has attracted people to Merlin."

Merlin had to close its initial public offering early as the public listing was nine times oversubscribed, said an anonymous source. Shares of the private equity-backed company climbed over 12% on the London bourse in its debut on Friday. Opening at a 3.2% premium at 325 pence, it had put the company's valuation at around GBP3.5 billion or USD5.6 billion.

Merlin said 87.5% of the shares sold in the stake sale went to its institutional investors, while the remaining 12.5% went to public investors.

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