Jetwing Symphony goes public
Jetwing Symphony Limited (JSL), the investment arm of Jetwing Hotels announced the opening of its Initial Public Offering scheduled for the 14th December 2017. The bid envisages to raise Rs. 753 to Rs. 904 million, by offering 50,218,856 ordinary shares at Rs. 15.00, Rs. 16.00 Rs. 17.00 and Rs. 19 per share.
Speaking at the function Jetwing Hotels Chairman, Hiran Cooray said, the Jetwing group is the only group that is wholly concentrating on the leisure sector. Further that it is the first time that a public has been called on to be a part of their success. The current portfolio of JSL includes , Jetwing Yala , Jetwing Kaduruketha, Jetwing Lake, Jetwing Surf and Jetwing Colombo Seven.
Our expansion drive will continue to focus on several developments within the country and we will also look to establish our presence in regional Asian economies. Announcing JSL's IPO is a significant milestone for the Jetwing family and in establishing the future and therefore allowing the Company to grow the local hospitality sector beyond our shores." Cooray said.
Jetwing also has opened several new areas in Sri Lanka and created new ventures and avenues of employment to the people of those respective areas. Today we have around 25% of the occupancy in our hotel by locals. This is a considerable potion. This offering will also pave the way to promote our brand of hospitality management in other regional countries such as Cambodia, Laos and Myanmar. This will without doubt strengthen the position of the company in the forefront of the tourism industry as well.
The IPO is to be listed on the Diri Savi Board of Colombo Stock Exchange and the issue will open on the 14th, December. The proceeds of the IPO will be utilized for the development of upcoming Jetwing Kandy hotel while the remaining proceeds will be utilized for the settlement of debts and to rebalance the overall gearing mix in some of its properties.
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% 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, "We are 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."
Jetwing Symphony recorded a commendable 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.