SeaWorld stock jumps 24% on first trading day
The theme park chain's initial public offering will pay down debt, and may deliver dividends for fun-loving investors.
With help from private equity firm Blackstone Group (BX), the amusement park chain raised $702 million by offering 26 million shares at $27 a piece. To celebrate its roughly $2.5 billion windfall, CNN notes that SeaWorld trotted penguins, an otter and a lemur through the NYSE trading floor.
Since Blackstone bought SeaWorld from brewing giant Anheuser-Busch InBev (BUD) in 2009, SeaWorld's books have begun working their way above sea level.
Last year, revenue increased 7% to $1.4 billion while profits more than quadrupled to $77.5 billion. According to SeaWorld CEO Jim Atchison, the funds from the company's stock offering will help pay down its debt, though the company is already promising shareholders a dividend of 80 cents a year.
Sea World runs 11 theme parks, including three SeaWorld locations and the Busch Gardens franchise -- the last remnant of its ties to Anheuser-Busch. This year, it plans to open "Antarctica: Empire of the Penguins" at its Orlando theme park and give visitors a view of more than 250 penguins.
With April more than halfway over and Memorial Day and summer fast approaching, SeaWorld stock is just another way for cubicle-bound investors to get a piece of everybody else's fun in the sun. Theme park chains Six Flags (SIX) and Cedar Fair (FUN) are both publicly traded and have both seen a more than 20% boost this year. There's always Disney (DIS) stock, which is up roughly 15% in 2013, but its price and the diversity of Disney's holdings beyond its theme parks make those shares a wild ride.
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[BRIEFING.COM] The stock market finished the Wednesday session on an upbeat note with the Nasdaq (+1.3%) ending in the lead. The S&P 500 settled higher by 1.1% with all ten sectors posting gains.
The benchmark index spent the entire trading day in the green, rallying to new highs during the last hour of action. The tech-heavy Nasdaq, meanwhile, briefly dipped into the red during morning action, but was able to recover swiftly.
Stocks began the trading day with modest gains ... More
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