Dubai: Shares of Dubai Parks and Resorts extended losses on Thursday, falling more than 8.5 per cent as retail investors liquidated their positions.
Dubai Parks and Resorts ended 8.79 per cent lower to be at Dh0.83 per share. The Dubai Financial Market General Index ended 7.42 per cent to end at 3,594.45, after falling to a low of 3,594.92, a level last seen in January 2014, making it the biggest loser in the GCC region.
Sovereign wealth funds like Kuwait Investment Authority and the Qatar Investment Authority were among the institutional investors that subscribed to the IPO, whose wholesale portion was oversubscribed 65 times. The retail tranche was subscribed 10 times.
“The retail investors got higher allocation due to lower subscription, so retail had to liquidate position to settle down their margins,” said Tariq Qaqish, head of asset management, Al Mal Capital, who oversees a portfolio of Dh500 million.
Dubai Parks & Resorts is building three theme parks, and a 500-room hotel on a stretch of desert halfway between Dubai and Abu Dhabi. The three theme parks will open by October 2016 and are expected to attract 6.7 million visitors the following year. Company will start giving profits from 2018.
