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.

By Jason Notte Apr 19, 2013 5:07PM
SeaworldIPO_041913_RM_300
AP: 110307062189
Believe show in Shamu Stadium at the SeaWorld Orlando theme park in Orlando, Fla. SeaWorld (SEAS) shares soared more than 24% to close at $33.52 Friday, their first day of trading on the New York Stock Exchange.

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.


More on moneyNOW


3Comments
Apr 20, 2013 1:06AM
avatar
Does shamu get a raise or stock options in her 401k????
Apr 22, 2013 4:23PM
avatar
Wow, $77.5 BILLION in profits based off $1.4 billion in revenue!  That's incredible!  I've never seen a business with 77x more dollars in profits than in revenue it took in!
Apr 20, 2013 12:54PM
avatar
SeaWorld seems pretty specific in what it does and susceptible to common events like poor weather or thrifty vacationers.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The stock market ended the Wednesday session on a mixed note. The tech-heavy Nasdaq displayed relative strength, climbing 0.4%, while the S&P 500 added 0.2% with five sectors settling in the green. For its part, the Dow Jones Industrial Average (-0.2%) spent the entire session below its flat line.

Equities started the midweek affair on a rather unassuming note in the absence of market-moving news or economic releases. With those pieces missing from the equation, ... More

MSN MONEY'S