Monday 16 / September / 2024
Muscat: Dubai Parks and Resorts announced on Monday that its Dh1.68 billion rights issue, to primarily finance its fourth theme park Six Flags Dubai, was 64 per cent subscribed on the first day of subscription (Thursday May 12, 2016), meaning it had exceeded Dh1 billion in confirmed subscriptions.
The committed investors who include Qatar Holding, Sheikh Majid Ibrahim Al Ibrahim and Al Nahda Investments have fully subscribed to their own rights as well as to part of the Meraas entitlement.
Rights holders have until Wednesday (May 18, 2016) to trade their rights on the Dubai Financial Market (DFM). Shareholders wishing to sell some or all of their rights, or purchase additional rights, can do so through securities brokers registered and licensed by the DFM.
Investors who are not registered shareholders can also participate in the rights issue by buying rights sold by existing rights holders on the DFM during this period.
Rights holders wishing to subscribe for new shares (using all or part of their entitlement to the rights) can do so during the subscription period which opened on May 12, 2016 and will close on May 25, 2016.
Subscription, either directly or through the rights holder's broker or custodian, can be done through any of the Emirates NBD receiving bank branches stated in the rights issue invitation published on April 19, 2016, the UAE Fund Transfer System (FTS) through any UAE bank branch, Emirates NBD ATMs (Emirates NBD customers), Emirates NBD Banknet system (Emirates NBD Customers) or online through the DFM eIPO system using a valid iVESTOR card.
Through a combination of debt and equity funding, Dubai Parks and Resorts is seeking to raise a total of Dh2.67 billion to primarily finance the development of Six Flags Dubai theme park. Dh1.68 billion of the funding is being raised via the rights issue, and the remaining Dh993 million is being supplied through debt financing from Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Sharjah Islamic Bank.
Once the rights issue has concluded, Dubai Parks and Resorts’ issued share capital will become Dh7,999,912,670. None of the additional capital being raised will be used to fund the existing Dubai Parks and Resorts development, which is expected to open in October this year.
Six Flags Dubai will be the fourth theme park at the Dubai Parks and Resorts destination and is expected to include around 27 rides and attractions for all ages, when it is planned to open in fourth quarter 2019.
Raed Kajoor Al Nuaimi, Chief Executive Officer of Dubai Parks and Resorts, stated that, “The demand we’ve seen from investors on the first day of subscription confirms the appeal of the Six Flags Dubai opportunity. The demand from retail investors was particularly strong for the first day: Dubai Parks and Resorts’ enhanced offer with Six Flags Dubai has clearly captured the imagination of UAE investors. In addition to our existing parks, which are on track and on budget to open in October, the Six Flags branded theme park — the first in the region — will further establish Dubai Parks and Resorts’ position as the Middle East’s largest leisure and entertainment destination. The rights issue offers our shareholders an opportunity to have an active part in being a part of our future growth.”
Arqaam Capital Limited and Emirates Financial Services are acting as joint bookrunners and joint lead managers for the transaction. Emirates NBD Bank is the sole receiving bank.
