Sri Lanka’s Jetwing Symphony hotel group seeks up to Rs900mn in IPO
ECONOMYNEXT – Sri Lanka’s Jetwing Symphony, a collection of new and hotels under construction is seeking up to 900 million rupees through an initial public offering of 50 million shares.
The firm is offering shares at 15, 16, 17 and 18 rupees, and shares will be allocated from the highest price down, with 40 percent of the offer reserved for retailers, 10 percent for unit trusts and 50 percent for others, the offer document said.
The firm had 451.96 million shares in issue as of September 2017.
Jetwing Symphony has four operational hotels. Jetwing Yala has been running since November 2013, Jetwing Kaduruketha (in Wellawaya) since December 2015, Jetwing Lake (Dambulla) since December 2016 and official launch in May 2017 and Jetwing Colombo Seven from February 2017.
Jetwing Surf in Pottuvil is expecting to start operations in soon with 90 percent of construction completed.
Jetwing Kandy Gallery is a project pending approvals, which is expected to be completed in 2019, and Jetwing Reef in Uppuvelli, which is now in the planning stage.
Jetwing Yala, turned around after two year and showed a profit of 18 million rupees in the 2017 financial year, the prospected used.
In the year to March 2017 the firm lost 149 million rupees from revenues of 734 million rupees, most of which came from Jetwing Yala.
The subsidiary firms have 605 employees.
The firm has loan facilities of 3.4 billion rupees and overdraft facilities of 837 million rupees. About 350 million rupees of the IPO proceeds will be used to reduce debt. The IPO document said gearing was 44 percent in the 2017 financial year.
Top shareholders were Jetwing Travels (Pvt) Ltd, with 20.75 percent (93.76mn) and ROK Holdings International Limited with 20.11 percent who had been issued stock earlier at 11 rupees per share when a billion rupees was invested in the group.
ROK Holdings is connected to Giuseppe Rocchi, an Italian national who has already invested in factories in Sri Lanka.
Blue Oceanic Hotels with 1.65 percent, Employees Provident Find 7.84 percent, NJ Cooray Builders (Pvt) Limited 6.44 percent and AMJ Cooray 6.06 percent are among other current shareholders. (Colombo/Dec04/2017 – Update II)