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3 Things to Watch for as SeaWorld Goes Public

By Rick Munarriz - Apr 15, 2013 at 4:57PM

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The marine life theme park operator plans to go public later this week, but there are a few things that investors need to be careful of before they dive into this IPO opportunity.

The IPO market is catching a big fish this week. SeaWorld Entertainment plans to price its offering on Thursday night -- and begin trading on Friday morning -- under the ticker symbol S-E-A-S.

It's naturally a great time for a park operator to go public. Cedar Fair (FUN -0.25%) and Six Flags (SIX -0.21%) have recently hit fresh highs, and investor appetite for recognized consumer brands is strong.

In this video, Rick -- backed by a Discovery Cove stuffed animal in the background -- goes over a few things that investors will need to watch out for as SeaWorld plans to offer 20 million shares between $24 and $27 apiece.

Between the lofty valuation and its relatively inferior yield when compared to Cedar Fair and Six Flags, this IPO may not make the big splash that IPO speculators are hoping for.

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