Dubai Parks and Resorts Successfully Raises AED 1.68 billion for Six Flags theme park

Monday 30 May 2016

Dubai – MENA Herald: Dubai Parks and Resorts today confirmed that it has successfully raised AED 1.68 billion from a 1.6 times oversubscribed Rights Issue, which was 2.5 times oversubscribed on the public tranche, at the end of subscription. Total subscription as at close on 25 May 2016 equalled AED 2.67 billion, demonstrating strong demand from investors. The Rights Issue is intended to raise AED 1.68 billion to primarily finance the development of the Six Flags Dubai theme park.

The Rights Issue, which was announced on 19 April 2016, gave registered shareholders and other investors who purchased Rights during the Rights trading period, the opportunity to subscribe for New Shares issued by Dubai Parks and Resorts at AED 1 per share. The trading of the Rights on the Dubai Financial Market commenced on the 4 May 2016 and ended on the 18 May 2016 with a total of 370 million Rights traded. Subscription for the New Shares commenced on the 12 May 2016 and closed on 25 May 2016.

Raed Kajoor Al Nuaimi, Chief Executive Officer of Dubai Parks and Resorts stated, “We have been working relentlessly to create an unforgettable theme park destination. Thanks to the support of our shareholders, we have successfully raised AED 1.68 billion in an oversubscribed Rights Issue to fund our growth strategy by adding a fourth theme park to our destination. 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 shall be listed on the Dubai Financial Market following approval from the Securities and Commodities Authority on or around the 5 June 2016. Meraas shall retain a majority shareholding, of 52%, with Qatar Holding increasing its shareholding in the company to 11% through the acquisition of a portion of Meraas’ Rights, in addition to subscribing to all of its own Rights.

The Rights Issue was approved by the Dubai Parks and Resorts’ shareholders at its General Assembly Meeting, which was held on 18 April 2016 in Dubai. Through a combination of debt and equity funding, Dubai Parks and Resorts sought to raise a total of AED 2.67 billion. AED 1.68 billion of the funding has been successfully raised via the Rights Issue, with the remaining AED 993 million being supplied through debt financing from Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Sharjah Islamic Bank.

At the conclusion of the Rights Issue, Dubai Parks and Resorts shall issue 1,678,084,962 New Shares, which will increase its total issued share capital to AED 7,999,912,670. None of the additional capital raised will be used to fund the existing Dubai Parks and Resorts development, expected to open in October this year. The capital raise will be used to fund the proposed Six Flags Dubai theme park is scheduled to open in Q4 2019. Six Flags Dubai will be the fourth theme park at the Dubai Parks and Resorts destination and is expected to include close to 27 rides and attractions for all ages.

Arqaam Capital Limited and Emirates Financial Services PSC acted as Joint Bookrunners and Joint Lead Managers for the transaction. Emirates NBD Bank PJSC was the Sole Receiving Bank.

For further details please refer to the Dubai Parks and Resorts’ Investor Relations web page

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