New shares begin trading for Dubai theme park
Trading has started on new shares in Dubai Parks and Resorts, an integrated theme park that includes LegoLand and Bollywood Parks.
The Dhs10.5 billion development is spread across 25 million square feet of land on Sheikh Zayed Road in Dubai. As well as the Lego and Bollywood attractions, it will feature Motiongate, a Hollywood-movie inspired theme park. Set to open in October, 6.7 million ticketed visits are projected for 2017, the first full year of operation.
Dubai Financial Market said a Dhs1.68 billion rights issue is tradable on the exchange from now until May 18.
Dubai Parks and Resorts said the rights issue was to primarily finance the development of its fourth theme park, Six Flags Dubai.
Trading of the rights issue enables existing shareholders of the company who do not wish to subscribe to the new shares, which the company plans to issue as part of its capital increase, to sell all or part of their rights to other investors.
Raed Kajoor Al Nuaimi, Chief Executive Officer of Dubai Parks and Resorts, said: “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’ posi- tion 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.”
The Rights Issue was approved by shareholders at the General Assembly Meeting on April 18 in Dubai.
Through a combination of debt and equity funding, Dubai Parks and Resorts is seeking to raise a total of Dhs2.67 billion to finance Six Flags Dubai. It said Dhs1.68 billion of the funding is being raised via the rights issue, and the remaining Dhs993 million is being supplied through debt financing from Abu Dhabi Commercial Bank, Dubai Islamic Bank and Sharjah Islamic Bank.
Six Flags Dubai is expected to include around 27 rides and attractions for all ages and is planned to open in the last quarter of 2019.
ON TRACK: Work on Motiongate earlier this year