Jetwing Symphony announces IPO to raise up to Rs.904mn
Jetwing Symphony Limited (JSL) announced the opening of its initial public offering (IPO) on December 14, 2017 in a bid to raise between Rs.753 million to Rs.904 million.
JSL intends to offer 50.2 million ordinary voting shares, which represents 10 percent of the company, to the public though a book building process at a price range of Rs. 15.00, Rs. 16.00, Rs. 17.00 and Rs.18.00 per share.Capital Alliance Partners Limited (CAL) is the Manager to the issue.
Incorporated in 2007, JSL will function as the Jetwing group’s investment arm for the future.
Its current portfolio includes Jetwing Yala (Yala), Jetwing Kaduruketha (Wellawaya), Jetwing Lake (Dambulla), Jetwing Surf (Pottuvil Point) and Jetwing Colombo
Funds raised from the IPO will go towards adding a property in Kandy— Jetwing Kandy Gallery—and towards rebalancing the overall gearing mix in some of its properties.
JSL’s current portfolio of hospitality properties offer eco-friendly and locally-enriched experiences to Sri Lanka’s booming tourism industry.
Its properties are also strategically located across the island to take advantage of the newest travel demands whilst providing travellers a holistic and truly
Sri Lankan experience.
“Jetwing’s footprint in tourism has been recognized since the early 1970s — a vision transpired by my father Herbert Cooray to build Sri Lanka as an attractive tourist destination.
“Announcing JSL’s IPO is a significant milestone for the Jetwing family and in establishing the future of the company to grow the local hospitality sector beyond our shores,” said Jetwing Hotels Chairman Hiran Cooray.
Under JSL, Jetwing Hotels introduced the first agro eco-luxury resort in Sri Lanka – Jetwing Kaduruketha, which is also home to a fifty-acre paddy field shared with 31 farming families of the nearby village, who are directly involved in cultivating paddy and distributing excess harvest to the local market.
Jetwing Yala and Jetwing Lake, in Yala and Dambulla respectively house the largest solar park installations in the hotel sector, generating 40 percent of their daily electricity consumption needs.
In addition, Jetwing Surf bagged the ‘Best Hotel Architecture Design’ Award at the recently concluded Property Guru – Asia Property Awards 2017 even before its opening and is also the Country’s first eco-luxury surf resort located in the East of the island.
Commenting on JSL’s IPO, Managing Director for Global Markets and Investment Banking from Capital Alliance Partners Limited, Deshan Pushparajah said he is pleased to invite the public to participate in a hitherto extremely successful family enterprise.
“The Jetwing family and its leadership team are fully invested in Sri Lanka’s tourism sector across disciplines of tours, experiential tourism and hotel management. This breadth of exposure adds significant synergies to JSL.
This is evidenced in how JSL’s first property – Jetwing Yala, turned profitable after just 18 months of opening its doors. We are confident this sole ‘pure play’ status in the hospitality and leisure sector will attract like-minded investors,” he stressed. Jetwing Symphony recorded a revenue growth of 44.5 percent to Rs.734.7 million during the financial year 2016/17 in comparison to the Rs.508.4 million earned during the previous financial year.
However, for the last five years the company hasn’t reported a profit.
In 2013, JSL raised Rs.1.2 billion in a private placement and according to issue’s prospectus, state-controlled pension fund Employees’ Provident Fund (EPF) was the main funder as it held 7.8 percent of the shares of the company.
Source : Daily Mirror