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Saturday, 6 January 2018 00:53 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
Looking forward to embrace the New Year with renewed aspirations, the country’s capital market yesterday had its first bell ringing ceremony and the first listing for 2018 by Jetwing Symphony Ltd.
On the first day of trading, the shares in Jetwing Symphony ended 0.7% firmer, compared to the opening price of Rs. 15 a share. The company raised Rs. 753 million by listing a 10% stake.
Jetwing Symphony Chairman Hiran Cooray said 2018 would be a year of consolidation and reducing debt for the company.
“We have made it clear that this is medium term investment and most of those who purchased shares also looked at it in the same way because the real estate value would obviously grow, but the financial returns will probably start coming from 2019 onwards. We cannot see a return in 2018, and this year we will consolidate and some of the monies that came in will be used to reduce debt and also to start the Kandy property. We are trying to keep an average of 42% to 45% debt and 55% equity,” he added.
2018 debutant...
Out of the five properties under the umbrella of Jetwing Symphony, he said the firm has borrowed close to Rs. 3 billion to develop properties in Colombo, Dambulla and Wellawaya and is expecting an overall loss of about Rs. 250 million this year.
Commenting on the IPO which was oversubscribed, he said the idea of getting listed came about in 2011, when the company decided that Jetwing Symphony would be the vehicle of growth for Jetwing in the future.
“After having completed five hotels and with two more in the pipeline, we decided that it was time to go public. More than 350 individual shareholders applied for shares, while two big institutional investors also came in with us. We did not plan to be the first IPO in 2018, but it just happened that way and we are quite excited and overwhelmed with the support that we received from the public,” he added.
Cooray also acknowledged that the firm was well aware of the responsibilities and assured that they would continue to carry out a growth drive to meet the expectations and interest of investors.
“We have had few private placements before and many in the public and the private sector both in Sri Lanka as well as internationally supported us, which allowed us to build five hotels within a short period of time. Now we are about to start the sixth one in Kandy, where Jetwing does not have a property,” he added.
He stated that they were waiting for the final approval of Jetwing Kandy Gallery, which would be a boutique hotel with 20 suites targeting high-end tourists, fully-owned by Jetwing Symphony Ltd., and the company intends to commence construction within the first quarter or beginning of the second quarter of 2018.
Colombo Stock Exchange (CSE) Chief Executive Officer Rajeeva Bandaranaike stated that the market had started the year on a positive note with a new listing in the very first week of trading for the year.
“Jetwing was one company that we have been keenly following and hoping for a long time that you will join the ranks of the CSE. We are delighted that you have taken this decision to list and have finally come on board,” he added.
Noting that transforming a private company to a public listed company brings great responsibility, Bandaranaike expressed confidence in living up to the expectations of all who invested in the recent share issue and creating wealth for their shareholders.
“We have no doubt that as a companyJetwing Symphony will do well and be in the forefront of our listed company fraternity. We invite you to keep making use of the capital market for your further financing and funding requirements. We will be there to help you,” he stressed.
The bell ringing ceremony was initiated to serve as a platform to generate exposure for listed companies. Chairman Hiran Cooray, Non-Executive Director Shiromal Cooray, Jetwing Hotels Managing DirectorRuan Samarasinghe and Non-Executive Directors Dr.VijithKannangara and Yvette Fernando from Jetwing Symphony Ltd. and the senior management of the CSE were present at the event. Capital
Alliance Partners Ltd., the managers to the issue, was represented by Global Markets and Investment Banking Managing Director DeshanPushparajah.
