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Dubai Parks and Resorts launches rights issue

DUBAI, May 4, 2016

Dubai Parks and Resorts, a leisure and entertainment destination coming up on a 16-million-sq-ft area in the UAE, on Wednesday began trading its shares on Dubai Financial Market (DFM).

The rights issue, which will be free-floated on the inaugural day only, is part of the company's plan to  raise funds worth Dh1.68 billion ($457 million) to primarily finance the development of its fourth theme park, Six Flags Dubai.

Six Flags Dubai will be the fourth theme park at the Dubai Parks and Resorts destination and is expected to include around 27 thrill rides and attractions for all ages when it is planned to open in Q4 2019.

Shareholders registered in the company's register as at the close of trading on the DFM on May 2 have been allocated a right for every 3.767 shares held, said the company in a statement.

Each right grants the holder the eligibility to subscribe for a new share at Dh1, it added.
 
The rights have been deposited into the clearing account or brokerage account of the registered shareholders under the trading symbol “Dubaiparksri”.
 
Dubai Parks and Resorts said the rights can be publicly traded on the DFM till May 18. 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, it stated.
 
The company said those 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) will be able to do so during the subscription period which opens on May 12 and closes on May 25.
 
CEO Raed Kajoor Al Nuaimi said: “Since its inception, we have set out a clear strategy to enhance the growth potential of Dubai Parks and Resorts. 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 creating an even bigger resort and be a part of our future growth,” stated Al Nuaimi.
 
The Rights Issue was approved by the Dubai Parks and Resorts’ shareholders at its General Assembly Meeting, which took place on April 18 in Dubai.
 
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 Six Flags Dubai theme park. 

While Dh1.68 billion will be raised through the rights Issue, 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 soar to Dh7,999.9 billion ($2.1 billion).

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.

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.-TradeArabia News Service




Tags: Leisure | rights issue | Dubai Parks and resorts |

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