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Al Tamimi & Co. advises on AED 5.5bn DFM rights issues in 3M

Al Tamimi & Co. advises on AED 5.5bn DFM rights issues in 3M
Al Tamimi & Company has advised on no less than three rights issues on the DFM (Photo Credit: Arabianeye-Reuters)

Dubai – Mubasher: Al Tamimi & Company has advised on no less than three rights issues on the Dubai Financial Market (DFM) in the past three months.

In total, the rights issues raised more than AED 5.5 billion dirhams and were all significantly oversubscribed, the largest law firm in the Middle East said in a statement released Tuesday.

In April this year, Al Tamimi’s Equity Capital Markets team advised leisure operator Dubai Parks & Resorts on its AED 1.6 billion rights issue, launched primarily to fund the development of a Six Flags theme park within the Dubai Parks and Resorts destination.  

“The rights issue was 60% 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,” the statement added.

In June, Al Tamimi advised Ajman Bank on a rights issue to raise AED 675 million, of which AED 500 million were raised through the issue of new ordinary shares and AED 175 million represented share premium, making it the first rights issue to take place on the DFM that includes a share premium component. Ajman Bank’s rights issue was 195% over-subscribed.

At the end of June, Dubai Islamic Bank (DIB) also advised by Al Tamimi, completed an AED 3.2 billion rights issue, which was approximately three times over-subscribed, the company added.

At the end of 2015, the legal firm advised on insurance company Takaful Emarat’s rights issue, the first tradable rights issue for a Takaful insurance company in the UAE, and the first ever to take place on the DFM.Al Tamimi has been closely involved in discussions with the Securities and Commodities Authority (SCA) and other relevant authorities to include suitable exemptions in securities regulation to enable rights issues to take place, it said.