Tuesday, May 24, 2016
Dubai: Dubai Parks and Resorts said on Tuesday its Dh1.68 billion rights issue was oversubscribed 1,25 times at the end of trading on May 23, underlining strong investor support. Total subscription as at close of May 23 amounted to Dh2.1 billion, the company said in a statement.
The rights issue is intended to primarily finance the development of Six Flags Dubai, the fourth theme park within the destination. Rights holders have until May 25 to exercise their Rights to subscribe for new shares.
“There is no doubt a significant gap exists for theme park destinations in the regional market and Indian subcontinent. 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 the company.” Raed Kajoor Al Nuaimi, Chief Executive Officer, Dubai Parks and Resorts, stated.
Once the rights issue has concluded, Dubai Parks and Resorts’ issued share capital will become Dh7.99 billion. 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 the fourth quarter of 2019.
Arqaam Capital Limited and Emirates Financial Services PSC are acting as Joint Bookrunners and Joint Lead Managers for the transaction.
By Siddesh Suresh Mayenkar Senior Reporter
Gulf News 2016. All rights reserved.