Monday, May 30, 2016

Dubai: Dubai Parks and Resorts said on Monday that it has 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.

Total subscription equalled Dh2.67 billion as at close on May 25, the company said in a statement. Post the rights issue, Qatar Holding has increased the stake 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, while Meraas, owned by Dubai government, remains majority shareholder with a total shareholding of 52 per cent.

The trading of the Rights on the Dubai Financial Market (DFM) started May 4 2016 and ended on May 18 2016 with a total of 370 million Rights traded. Subscription for the new shares commenced on May 12 and closed on May 25.

The Dh1.68 billion will be primarily used to finance the development of the Six Flags Dubai theme park, which is expected to open in the fourth quarter of 2019. The proceeds from the Rights Issue will be used “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…,” stated Raed Kajoor Al Nuaimi, chief executive of Dubai Parks and Resorts.

The new shares will be listed on the DFM following approval from the Securities and Commodities Authority on or around June 5 this year, according to the statement.

Staff Report

Gulf News 2016. All rights reserved.