Dubai Parks and Resorts rights issue on course

Dubai Parks and Resorts said yesterday that investors had subscribed to more than Dh1 billion of its Dh1.68bn rights issue on the first day of the offer period.

The parks operator is raising the money to fund its Six Flags Dubai theme park.

Between May 12 and May 25, existing Dubai Parks and Resorts shareholders have the option to subscribe to one new share for every 3.767 shares they hold at par value.

Shareholders who do not wish to subscribe to the new rights issue can sell their rights to interested parties via the Dubai Financial Market until tomorrow.

The price of such rights issued shares yesterday fell by 9 per cent on the DFM, suggesting that most outside investors looking to subscribe to the new subscription issue have already done so ahead of the Thursday deadline. Subscriptions to the rights issue close on Wednesday next week.

The parks operator, which owns three linked Legoland, Motiongate and Bollywood Parks theme parks in Jebel Ali, said that its so-called committed investors had fully subscribed to their own rights, as well as to part of those allo­cated to Meraas, which owns 60 per cent of the company.

The company’s committed investors include sovereign wealth fund Qatar Holding, Sheikh Majid bin Ibrahim Al Ibrahim of Saudi Arabia-based Naseel Investments and Abu Dhabi’s Al Nahda Investments.

A spokesman for the com­pany declined to comment on whether the company has yet received Dh1.68bn worth of subscriptions

Shares in the theme parks operator yesterday fell by 1.54 per cent to Dh1.28 on the DFM.

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