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29 March 2024

Dubai Parks and Resorts Dh1.68bn rights issue oversubscribed

Dubai Parks and Resorts today confirmed that the Dh1.68 billion Rights Issue.

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By Staff

Dubai Parks and Resorts today confirmed that the Dh1.68 billion Rights Issue, which was announced on the April 19, 2016, was oversubscribed at the end of trading on May 23, 2016, underlining strong investor support.

Total subscription as at close of May 23, 2016, amounted to Dh2.1 billion. The Rights Issue is intended to primarily finance the development of Six Flags Dubai, the fourth theme park within the Dubai Parks and Resorts destination.

Rights holders have until Wednesday, May 25, 2016, to exercise their rights to subscribe for new shares in Dubai Parks and Resorts.

“There is no doubt a significant gap exists for theme park destinations in the regional market and Indian sub-continent. We are pleased to see the extent of shareholder support for the Rights Issue, which confirms investor’s appetite to share in the growth of the UAE and of Dubai Parks and Resorts,” said Raed Kajoor Al Nuaimi, Chief Executive Officer, Dubai Parks and Resorts.

The allocation of additional new shares shall be on a pro-rata basis to the persons who subscribe to such shares, based on the number of such shares requested by such persons, at the same issue price as the new shares.

The Rights Issue, approved by Dubai Parks and Resorts’ shareholders at the General Assembly Meeting held last month, was launched to raise Dh1.68bn to primarily finance the development of the Six Flags Dubai theme park – an extension of the current Dubai Parks and Resorts offering.

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 offering, 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 Q4 2019.

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.