The theme park developer has already secured $270m in debt financing
Dubai Parks and Resorts has announced the launch of a rights issue intended to raise AED1.68 billion ($457.4m) to finance the Six Flags theme park within its upcoming development.
The theme park developer is seeking to raise a total of AED2.67 billion in financing, it said in a bourse filing. The remaining AED993 million ($270m) has already been secured in debt financing from Abu Dhabi Commercial Bank, Dubai Islamic Bank and Sharjah Islamic Bank.
The launch of the rights issue was approved by the board of directors at a meeting following the General Assembly meeting held on April 18.
Trading in the rights on the Dubai Financial Market (DFM) will begin on Wednesday, May 4, and the last day of trading will be Wednesday, May 18.
The total projected cost of the Six Flags Dubai project – expected to open in the fourth quarter of 2019 – is AED 2.606 billion, Dubai Parks and Resorts said.
The remaining AED65 million 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,” the developer said.
“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,” said Raed Kajoor Al Nuaimi, CEO, Dubai Parks and Resorts.
“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 AED 993 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.”