Dubai Parks and Resorts today confirmed that it has successfully raised Dh1.68 billion ($457 million) from a rights issue that has been oversubscribed by 1.6 times.

The rights issue is intended to raise funds to primarily finance the development of the Six Flags Dubai theme park.

Raed Kajoor Al Nuaimi, chief executive officer of Dubai Parks and Resorts, stated: “We have been working relentlessly to create an unforgettable theme park destination. Thanks to the support of our shareholders, we have successfully raised Dh1.68 billion in an oversubscribed rights issue 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 and further establish our position as the Middle East’s largest leisure and entertainment destination. We thank our shareholders for being a part of our growth, and we are very excited to begin the next phase of our strategy.”

The new shares shall be listed on the Dubai Financial Market following approval from the Securities and Commodities Authority on or around June 5, the company said.

Meraas shall retain a majority shareholding, of 52 per cent, with Qatar Holding increasing 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, it said.

The rights issue was approved by the Dubai Parks and Resorts’ shareholders at its general assembly meeting held on April 18.  Through a combination of debt and equity funding, the company sought to raise a total of Dh2.67 billion -- Dh1.68 billion via the rights issue and the remaining Dh993 million being supplied through debt financing from Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Sharjah Islamic Bank.   - TradeArabia News Service