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] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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These hot movers could rise by double digits in coming months.
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