The Motley Fool

Merlin Entertainments Plc Flotation Priced At Same Level As Royal Mail Plc

Last week brought the announcement that Merlin Entertainments — which owns the likes of Madame Tussauds, The London Dungeons, The London Eye , LEGOLAND Parks, Alton Towers, Thorpe Park and Chessington World of Adventures — is set to launch an initial public offering, and now the company has announced its expected price range.

With the Global Offer price range set between 280p and 330p per share — the same range that Royal Mail (LSE: RMG) was set at, perhaps controversially in hindsight — management values the entertainment group between £2.86bn and £3.34bn.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

The primary offering constitutes around £200 million for around 20% – 30% of its shares, to be used to reduce net debt and to pay costs associated with the IPO. Nick Varney, Chief Executive Officer of Merlin, commented:

“We believe that Merlin Entertainments has bright prospects for the future and, as we said in our Intention to Float announcement, the listing will provide us with the platform for our next stage of development. We look forward to embarking on the next stage of the process.”

Market sentiment has improved in recent months, and certain IPOs are beginning to catch the eye of investors. Twitter is due to float on the New York Stock Exchange in the coming weeks, while rumours that Whitbread is planning to float its Costa Coffee chain and The Daily Mail & General Trust may do likewise with its Zoopla website are creating ever more noise in the City.

Then, of course, there’s Royal Mail, which is now up almost 64% since it floated at 330p (although that has caused the initial 6% yield to fall to around 4%), and has made for a popular topic of discussion among seasoned and novice investors alike. While Twitter is looking to avoid the problems that Facebook had upon launch by justifying and downplaying any ‘hype’ with a road show to big potential investors, Merlin Entertainments looks like it may be learning from Royal Mail by treading in its footsteps.

There’s no doubt it was a hugely successful IPO, for investors who bought in with £750 and have held their position, at least. The question is: can Merlin Entertainments fill those pretty sizeable shoes? Let us know what you think in the comments box below.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

> Sam owns shares in Royal Mail, but no other company mentioned.