Dubai Parks and Resorts is seeking to raise a total of Dh2.67bn in additional financing, of which Dh1.68bn is being raised through the Rights Issue with the remaining Dh993 million through debt financing secured from Abu Dhabi Commercial Bank, Dubai Islamic Bank and Sharjah Islamic Bank.

In a statement, Dubai Parks and Resorts confirmed that an agreement has been reached between Meraas, the majority shareholder, and certain investors to acquire a portion of Meraas’ rights, in addition to more than 80 per cent of the public shares, should they not be subscribed for by the holders of rights.

Nevertheless, Meraas will continue to be the majority shareholder, and the statement said it is committed to the long-term success of Dubai Parks and Resorts.

The rights issue will increase the issued share capital of Dubai Parks and Resorts to Dh7,999,912,670 through the issue of 1,678,084,962 new shares with a nominal value of AED1. The issue has been approved by the UAE’s Securities and Commodities Authority.

Shareholders registered on the company’s register and the DFM at the close of business Monday, May 2, 2016 will be allocated 1 share for every 3.767 shares held.

Trading in the rights on the DFM will begin on Wednesday, May 4, 2016, and the last day of trading will be Wednesday, May 18, 2016, it said.

Subscription for the new shares will take place between Thursday, May 12, 2016, when the subscription period opens, and Wednesday, May 25, 2016, when the subscription period closes.

The total projected cost of the Six Flags Dubai project is Dh2.606 billion. Six Flags is considered to be one of the world’s largest amusement park companies based on the number of parks it operates. In 2014, it was the fifth most visited amusement park group in the world.
The remaining Dh65 million that is being raised will be used to cover new business development expenses and costs associated with issuing the new shares. None of the additional capital raised will be used for funding existing project development.

Six Flags Dubai is projected to open in Q4 2019 and have 27 rides and attractions.

Raed Kajoor Al Nuaimi, Chief Executive Officer, Dubai Parks and Resorts, said, “We are well positioned to benefit from two things: firstly, we’re based in Dubai, which is the world’s fourth favourite travel destination, and we will be the first integrated theme park destination in Dubai; secondly, Dubai’s infrastructure – the expansion of Dubai International Airport and the Metro line – as well as easier visa regulations will encourage more visitors to come to the UAE. There is a significant gap in the regional market and the Indian sub-continent for theme park destinations and Dubai Parks and Resorts is uniquely positioned to benefit from this.

“The Rights Issue gives our existing shareholders and new shareholders the opportunity to share in Dubai Parks and Resorts’ growth strategy. We have already successfully secured Dh993 million in non-recourse debt financing. In addition, the commitments we have received from the Committed Investors to the Rights Issue illustrates the confidence regional institutional investors have in Dubai Parks and Resorts and its growth potential. Six Flags Dubai will enable Dubai Parks and Resorts to offer an element of thrill, enabling us to target new market segments, tastes, and age groups.”