AED 1.68bn Rights Issue to primarily finance Six Flags Dubai
Dubai Parks and Resorts today announced the start of the trading period for Rights allocated to shareholders as part of its AED 1.68 billion Rights Issue to primarily finance the development of its fourth theme park, Six Flags Dubai.
Shareholders registered in the Company’s register as at the close of trading on the DFM on 2 May 2016 have been allocated 1 Right for every 3.767 Shares held. Each Right grants the holder the eligibility to subscribe for one New Share at 1 AED.
The Rights have been deposited into the clearing account or brokerage account of the registered Shareholders under the trading symbol “DUBAIPARKSRI”.
Rights can be publicly traded on the DFM from today until 18 May, 2016. 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.
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 12 May 2016 and will close on 25 May 2016.
Subscription, either directly or through the Rights holders’ broker or custodian, can be done through the Emirates NBD receiving bank branches outlined in the Rights Issue invitation, the UAE Fund Transfer System (FTS) through any UAE bank branch, Emirates NBD ATMs (Emirates NBD customers), Emirates NBD Banknet system (Emirates NBD Customers) or online through the DFM eIPO system using a valid iVESTOR card.
The Rights Issue was approved by the Dubai Parks and Resorts’ shareholders at its General Assembly Meeting, which took place on 18 April, 2016 in Dubai.
Through a combination of debt and equity funding, Dubai Parks and Resorts is seeking to raise a total of AED 2.67 billion to primarily finance the Six Flags Dubai theme park. AED 1.68 billion of the funding is being raised via the Rights Issue, and the remaining AED 993 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 become AED 7,999,912,670. 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.
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.
Raed Kajoor Al Nuaimi, Chief Executive Officer of Dubai Parks and Resorts stated that, “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.”
Arqaam Capital Limited and Emirates Financial Services PSC are acting as Joint Bookrunners and Joint Lead Managers for the transaction. Emirates NBD Bank PJSC is the sole Receiving Bank.
For further details please refer to the Dubai Parks and Resorts’ Investor Relations web page http://www.dprcorporate.ae/investor-relations
About Dubai Parks and Resorts
Dubai Parks and Resorts PJSC (DFM: DUBAIPARKS), is set to be the region’s largest integrated theme park destination comprising three theme parks: motiongate™ Dubai, a movie inspired theme park showcasing some of Hollywood’s most beloved characters from DreamWorks Animation, Sony Pictures Studios and Lionsgate; Bollywood Parks™ Dubai, the first theme park based on the sights and sounds of Bollywood; as well as LEGOLAND® Dubai, a unique, interactive theme park for families which will bring the well-known LEGO® brick to life in a playful learning environment; and LEGOLAND® Water Park, the region’s first water park catering to families with children aged 2-12.
The entire destination will be connected by Riverland™ Dubai – a retail, dining and entertainment walkway located at the heart of the destination and guests can stay at the Lapita™ Hotel, a Polynesian-themed resort catering to families, which will be managed by the Marriott Group.
Set to open in October this year, the AED 10.5 billion development is spread across 25 million square feet of land located on Sheikh Zayed Road, Dubai opposite the Palm Jebel Ali. 6.7 million ticketed visits are projected for 2017, the first full year of operation.
For further information please contact:
Marwa Gouda, Head of Investor Relations, Dubai Parks and Resorts
Jon Earl, Managing Director, FTI Consulting