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Dubai Parks & Resorts said today that it has raised AED 1.68bn from a 1.6 times oversubscribed rights issue.
The company said total subscriptions were AED 2.67bn.
Most of the money is to be used to finance the development of the Six Flags Dubai theme park which is due to open in the fourth quarter of 2019. It will be the fourth theme park at the Dubai Parks & Resorts destination, which is located south of Dubai City.
The new shares will be listed on the Dubai Financial Market following approval from the UAE’s Securities & Commodities Authority on or around the 5 June 2016. Meraas, a Dubai government developer, will retain 51 per cent of the company’s shares.
Qatar Holding has increased its shareholding 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.
Dubai Parks & Resorts is raising AED 2.67bn. The balance is to be come through a loan from Abu Dhabi Commercial Bank, Dubai Islamic Bank and Sharjah Islamic Bank.
The rights Issue was approved by the Dubai Parks &Resorts’ shareholders at its general assembly Meeting on 18 April 2016. Dubai Parks & Resorts is raising a total of AED 2.67bn. The remaining AED 993 million is being supplied through debt financing from Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Sharjah Islamic Bank.
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.
Dubai Parks & Resorts PJSC is developing three theme parks:
- motiongate™ Dubai, a movie inspired theme park showcasing DreamWorks Animation characters, Sony Pictures Studios and Lionsgate
- Bollywood Parks™ Dubai, the first theme park based on Bollywood films
- LEGOLAND® Dubai, a unique, interactive theme park for families which will bring the well-known LEGO® brick to life in a playful learning environment. This will include the LEGOLAND® Water Park.
The 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.
The AED 10.5bn development is due to open later this year. It occupies a 25 million square feet site opposite the Palm Jebel Ali. It aims to have 6.7 million ticketed visits in 2017.