Al Tamimi & Company, the largest law firm in the Middle East, has advised on three rights issues on Dubai Financial Market (DFM) in the last three months.

 In total, the rights issues raised more than Dh5.5 billion ($1.5 billion), and they were all significantly oversubscribed.  

In April, Al Tamimi’s Equity Capital Markets team advised leisure operator Dubai Parks & Resorts on its 1.6 billion rights issue, which was launched primarily to fund the development of a Six Flags theme park within the Dubai Parks and Resorts destination.  The rights issue was 60 per cent oversubscribed and included a minimum commitment subscription from certain investors. This is the first new issue of shares in the UAE to have such an underwriting arrangement.   

Earlier in June, Al Tamimi advised Ajman Bank on a rights issue to raise Dh675 million. Of this, Dh500 million was raised through the issue of new ordinary shares and Dh175 million represented share premium, making it the first rights issue to take place on DFM that includes a share premium component. The rights issue was 195 per cent over-subscribed.

At the end of June, Dubai Islamic Bank, advised by Al Tamimi, completed a 3.2 billion rights issue, which was approximately three times over-subscribed.

Husam Hourani, managing partner at Al Tamimi & Company, said: “Through our close involvement with SCA in the development of the new regulations, we believe we are the best qualified law firm to provide advice to companies seeking equity funding through such mechanisms, as demonstrated by the leading role we have played in these recent rights issues.”

“We are very pleased to have advised on these transactions, which have each established new precedents through their various structural and funding elements.  Such innovation clearly contributed to their success and Al Tamimi is proud to have played its part in the injection of new levels of sophistication into the DFM. A market which enables successful companies to access capital to support their growth plans is in everyone’s interests and the level of investor interest in these transactions is a clear expression of confidence in it,” Hourani added. – TradeArabia News Service