Long-awaited Jetwing Symphony IPO announced

• Offer for subscription to open on Dec.14
• Firm to offer 50.2mn shares or 10% stake

The long-awaited initial public offering (IPO) of Jetwing Symphony will open up for subscription on December 14.

The Jetwing Hotels group subsidiary will issue 50.2 million shares or a 10 percent stake through a book-building process from and out of the offer price bands of Rs.18, Rs.17, Rs.16 and Rs.15, to raise between Rs.753 million to Rs.904 million. 

This is not the first time Jetwing Symphony announced a capital call as the company, which was established to cleave off its new hotels from the older ones, raised Rs.1.2 billion in a private placement back in 2013 for a 30 percent stake in the company to fund four hotel projects. 

The four hotel properties owned and managed under the new umbrella firm are Jetwing Yala, Jetwing Lake, Jetwing Kaduruketha and Jetwing Colombo Seven. 

Another three properties – Jetwing Kandy Gallery, Jetwing Pottuvil Point and Jetwing Reef in Uppuveli, will come online in the future. 

The estimated value of the existing and new properties is roughly about Rs.10.0 billion. 

The group also is exploring opportunities expanding its footprint beyond Sri Lanka in tourist hotspots such as Myanmar and Laos. 

According to reports, the Jetwing group has 35 properties and according to Group Chairman Hiran Cooray, Jetwing Symphony was established to separate the family-owned properties from the new hotel cluster, which was built with the financing support of outside investors. 

The intention to taking Jetwing Symphony public was first announced in 2013, when the company was getting ready to raise moneys from its initial round of public financing by way of a private placement. 

From a valuation point of view, although the initial round of financing may have given a valuation, it has limited relevance when determining the IPO price because the future potential of the company could be much higher with the new properties, which are slated to come online. 

According to reports, the Jetwing Hotels group holds a 50 percent stake in Jetwing Symphony. 

The purpose for which the IPO proceeds would be utilised is still not known as the issue prospectus will only be available today. 

The issue is managed by Capital Alliance, the same investment banker that managed the 2013 private placement. 

The Colombo Stock Exchange last week gave its preliminary approval to Jetwing Symphony to list its shares on the bourse.

Meanwhile, the LVL Energy Fund’s Rs.1.2 billion IPO also opens on December 14.