Dh1.68bn raised for Dubai Parks and Resorts' fourth theme park

Rights issue for Six Flags theme park 1.6 times oversubscribed

Dubai Parks and Resorts (DPR) today confirmed that it has successfully 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.

DPR said in a media statement that total subscription as at close on May 25, 2016, equalled Dh2.67bn, demonstrating strong demand from investors.

The Rights Issue is intended to raise Dh1.68 billion to primarily finance the development of the Six Flags Dubai theme park.

“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,” said Raed Kajoor Al Nuaimi, Chief Executive Officer of Dubai Parks and Resorts.

“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 will be listed on the Dubai Financial Market following approval from the Securities and Commodities Authority on or around June 5, 2016.

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.

Through a combination of debt and equity funding, DPR sought to raise a total of Dh2.67bn, of which Dh1.68bn has been successfully raised via the rights issue while the remaining Dh993 million is being supplied through debt financing from Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Sharjah Islamic Bank, the firm said.

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.

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