Jetwing Symphony Ltd. announced its Initial Public Offering (IPO) yesterday to raise between Rs. 753 million and Rs. 904 million to invest in several new properties in Sri Lanka and expand overall operations.
Jetwing Symphony Ltd. (JSL) intends to offer 50,2I8,856 ordinary voting shares to the public from 14 December, which is a 10% stake, at a price range of Rs. 15, Rs. 16, Rs. 17 and Rs. 18 per share. Capital Alliance Partners Ltd. (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 Seven (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.
Rs. 300 million from the proceeds is earmarked for investment in The Riverbank, while the Pottuvil Point and Cultural Heritage will get about Rs. 250 million for the settlement of debt. If the full extent of Rs. 904 million is raised, additional funding will be dedicated towards repayment of outstanding loans, officials of the company told reporters.
“This will be the first time we are coming out on our own and inviting the public to partake in Sri Lanka’s journey. I know many would ask what’s happening to Sri Lanka’s tourism. Let me tell you one thing, the arrivals that you are talking of today, the figures that you see today, is coming in purely from the safety and security factor. We are extremely confident the future will be even better,” said Jetwing Hotels Chairman Hiran Cooray.
The targeted marketing campaign by the Government, expected to be rolled out next year, will further boost these prospects, Cooray noted.
“Once the marketing campaign happens the quality that we want to see will be realised. We are looking at increasing the formal segment and we are optimistic that will happen. Investments will fall in line with these progressive prospects and tourism could grow to be the largest foreign exchange earner for Sri Lanka within the next five years.”
A successful IPO would also pave the way for JSL to invest in emerging East Asian destinations such as Cambodia, Laos and Myanmar where Cooray insisted potential existed for the company to roll out its unique brand of Sri Lankan hospitality.
JSL’s current portfolio of hospitality properties offers 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 with a holistic and truly Sri Lankan experience.
Jetwing Symphony recorded revenue growth of 44.5% 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.