Seylan Bank and the Amaleans were the biggest buyers of the Jetwing Symphony (JETS) shares during its Initial Public Offering, according to the first interim financial statement of JETS.
Amaliya Private Limited, which is a firm related to apparel giant MAS Holdings, purchased 25.1 million shares or a 5 percent stake in JETS, for which S. D. Amalean was appointed as a director in JETS.
Seylan Bank PLC had purchased 3.3 million shares, or a 0.66 percent stake. Meanwhile N. H. V. Perera had bought a 0.63 percent stake in JETS, while the Tangerine Hotel Group’s Nilaveli Beach Hotels Limited too purchased a 0.62 percent stake in JETS.
The IPO was held to raise funds towards funding the construction of new Jetwing properties in Kandy and Pottuvil, and to relieve some of the debt in the already completed projects, which became operational over the past two years. Just one of the properties under JETS is currently generating profits, after it had been operational for two years, and all the projects under JETS are expected to follow a similar time frame for generating profits. The prospectus for the IPO said JETS would become profitable by 2020.
JETS is also eyeing investments abroad in the South East Asian market.
Rs. 273 million of the Rs.753 million raised from the IPO was utilized after just over a month of going public, with the unutilized funds being invested temporarily in REPO agreements and with Capital Alliance Investments Ltd.
For the quarter from October to December 2017, JETS posted a Rs. 105.2 million net loss, compared to a Rs. 22.3 million net loss year-on-year (YoY), although the revenue increased 125 percent YoY to Rs.354.6 million. Cost of sales increased 117 percent YoY to Rs. 65 million.
Administrative expenses doubled YoY to Rs. 191.7 million, contributing to operating profits of Rs. 81.8 million, which was still a 134 percent YoY improvement.
However, finance costs increased fourfold to Rs.106 million, while depreciation and amortization increased 154 percent YoY to Rs.79.5 million, affecting the bottom line further.
For the first nine months of the 2018 financial year, JETS posted a net loss of Rs. 338.3 million, falling from a net loss of Rs. 68 million YoY. Revenue for the three quarters increased 140 percent YoY to Rs. 1billion while cost of sales increased 137 percent YoY to Rs. 190.4 million.
Expenses during the nine months increased by nearly similar ratios to those experienced during the October-December quarter.
JETS’ asset base increased to Rs.10.2 billion from Rs. 9.6 billion at the start of the financial year. There was little movement in long-term debt, but short-term debt increased to Rs. 1.3 billion from Rs. 1 billion in the nine-month period.