Dubai Parks and Resorts said it aims to raise its capital by Dh1.68 billion ($457 million) to finance the development of a Six Flags Dubai theme park within its leisure and entertainment destination coming up on a 16-million-sq-ft area in the UAE.

Planned to open in the fourth quarter of 2019, the proposed Six Flags Dubai will be the fourth theme park at the Dubai Parks and Resorts destination and is expected to include close to 27 rides and attractions for all ages.

On completion, it will become the region’s largest integrated theme park destination comprising motiongate Dubai, a movie-inspired theme park showcasing some of Hollywood’s most beloved characters from DreamWorks Animation, Sony Pictures Studios and Lionsgate; Bollywood Parks Dubai, the first theme park based on the sights and sounds of Bollywood; as well as Legoland Dubai, a unique, interactive theme park for families, said a statement from the company.

Dubai Parks and Resorts officials said they plan to raise the capital through a rights issue with a nominal value of Dh1 per share. However, the company said the capital hike is subject to shareholder and regulatory approvals.

The group will be holding its first general assembly meeting on April 18 at the Hotel Taj in Business Bay, Dubai, where the shareholders will be asked to pass a special resolution to approve the proposed capital hike.

Subject to shareholder approval, the board will have one year from the General Assembly to execute and decide upon the timing of the proposed rights issue, which is also subject to the approval of the Securities and Commodities Authority (SCA), said the company in its statement.

Once the rights issue is announced and successfully concluded, the company’s issued share capital will become Dh7.9 billion ($2.15 billion), it added.

The total capital requirement for the project is estimated at Dh2.6 billion ($707.88 million), with an additional Dh65 million ($17.7 million) being raised to cover new business development and issue expenses.

This will be funded through a debt financing of Dh993 million ($270 million), and the remaining Dh1.67 billion ($457 million) will be funded through the proposed rights issue, said a top official.

"However, none of the additional capital being raised will be used to fund the existing Dubai Parks and Resorts development expected to open in October this year," remarked its CEO Raed Kajoor Al Nuaimi.
 
"The addition of a Six Flags branded theme park  - the first in the region - will further establish Dubai Parks and Resorts’ position as the Middle East’s largest leisure and entertainment destination. Six Flags is one of the world’s largest amusement park corporations with 18 properties around the world," he noted.

"This means we will be able to strengthen the appeal of our destination, attracting thrill seekers of all ages, to complement motiongate Dubai, Legoland Dubai, and Bollywood Parks Dubai, which broadly appeal to families," he added.-TradeArabia News Service