Jetwing sings for its supper with Symphony
Jetwing has set its sights on overseas properties rekindling the Sri Lankan experience, Kamburuketha style in Cambodia, Laos and Myanmar even as it launches an IPO for the Jetwing Symphony arm of the group aiming at attracting over Rs.900 million in share purchases.
This is aimed at settling its Rs.4 billion debt and investing the cash raised from the Jetwing Symphony IPO to establish its Kandy property, Jetwing Kandy Gallery and towards rebalancing the overall gearing mix in some of its properties, Jetwing Chairman Hiran Cooray stated on Tuesday at the media briefing held at Jetwing Colombo Seven. The organisation is also eyeing developing its Trincomalee property in 2019.
Mr. Cooray noted that following advice after the 2009 conflict the group had opened doors to investors outside the family to establish hotels under the banner Jetwing Symphony Ltd(JSL) which has been listed. The IPO will open on December 14 to raise between Rs.753 million to Rs.904 million by offering over 50.2 milion ordinary voting shares at a price of Rs.15, Rs.16 Rs.17 and Rs.18 per share with Capital Alliance Partners Ltd, the Manager to the issue.
JSL’s current portfolio includes Jetwing Yala in Yala, Jetwing Kaduruketha in Wellawaya, Jetwing Lake in Dambulla, Jetwing Surf in Pottuvil Point and Jetwing Colombo Seven in Colombo.
Mr. Cooray noted that within the next three years they would consolidate and then move to other destinations like Cambodia, Laos and Myanmar where they hope to establish something similar to the Kanduruketha concept.
This would involve the local communities to showcase them in their local cultural setting, it was pointed out adding that unlike the Sri Lankan populace that was quick to learn their English Jetwing would face the challenge of educating the locals in these destinations in the English language.
Mr. Cooray pointed out that the number of arrivals is increasing solely due to the safety and security assurance in Sri Lanka and in this respect he was confident the future would be better.
He pointed out, “All of us are putting pressure on the government to start the marketing campaign,” adding that the formal sector is set to grow as it continues to fight for its share of the market that is currently at around 40-50 per cent of the total space.
Mr. Cooray also noted that five years down the line tourism would become the highest income generator to the country.
Jetwing Syphony recorded a commendable revenue growth of 44.5 per cent 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.