Proceeds will be used to finance the Six Flags Dubai theme park.

Dubai Parks and Resorts has raised Dh1.68 billion from a 1.6 times oversubscribed rights issue, which was 2.5 times oversubscribed on the public tranche, at the end of subscription.

Total subscription as at close on May 25 equalled Dh2.67 billion, demonstrating strong demand from investors.

The money will be used to raise Dh1.68 billion to primarily finance the development of the Six Flags Dubai theme park.

The rights issue, which was announced on April 19, gave registered shareholders and other investors who purchased rights during the rights trading period, the opportunity to subscribe for new shares issued by Dubai Parks and Resorts at Dh1 per share.

The trading of the rights on the Dubai Financial Market commenced on May 4 and ended on May 18, with a total of 370 million rights traded. Subscription for the new shares commenced on May 12 and closed on May 25.

Raed Kajoor Al Nuaimi, CEO of Dubai Parks and Resorts, said: “We have been working relentlessly to create an unforgettable theme park destination. Thanks to the support of our shareholders, we have successfully raised Dh1.68 billion in an oversubscribed rights issue to fund our growth strategy by adding a fourth theme park to our destination. The addition of Six Flags Dubai will enhance our already extensive offering and further establish our position as the Middle East’s largest leisure and entertainment destination. We thank our shareholders for being a part of our growth, and we are very excited to begin the next phase of our strategy.”

The new shares shall be listed on the Dubai Financial Market following approval from the Securities and Commodities Authority on or around June 5. Meraas shall retain a majority shareholding of 52 per cent, with Qatar Holding increasing its shareholding in the company to 11 per cent through the acquisition of a portion of Meraas’ rights, in addition to subscribing to all of its own rights.

The rights issue was approved by the Dubai Parks and Resorts’ shareholders at its general assembly meeting on April 18.

Through a combination of debt and equity funding, Dubai Parks and Resorts sought to raise Dh2.67 billion. While Dh1.68 billion has been raised via the rights issue, the remaining Dh993 million has been supplied through debt financing from Abu Dhabi Commercial Bank, Dubai Islamic Bank and Sharjah Islamic Bank.

At the conclusion of the rights issue, Dubai Parks and Resorts shall issue 1,678,084,962 new shares, which will increase its total issued share capital to Dh7,999,912,670. None of the additional capital raised will be used to fund the existing Dubai Parks and Resorts development, expected to open in October this year.

The capital raise will be used to fund the proposed Six Flags Dubai theme park, scheduled to open in Q4 2019. Six Flags Dubai will be the fourth theme park at the Dubai Parks and Resorts destination and is expected to include 27 rides and attractions.

Arqaam Capital Limited and Emirates Financial Services acted as joint bookrunners and joint lead managers for the transaction. Emirates NBD Bank was the sole receiving bank.


Staff Report / Dubai ; Khaleej Times ; May 30, 2016