Jetwing Symphony’s Rs. 500 m Rights Issue draws extra demand

Monday, 2 January 2023 00:24 - - {{hitsCtrl.values.hits}}

Move reflects confidence in company and future prospects for tourism

Jetwing Symphony Chairman Hiran Cooray

The Rs. 500 million Rights Issue of Jetwing Symphony PLC had drawn extra demand reinforcing shareholder and new investor confidence both in the company and future prospects for tourism.

The company opted to raise Rs. 500 million through an issuance of Rights on the basis of one new share for every 5.02 shares held at Rs. 5 each. It involved issuance of 100 million shares worth Rs. 500 million. Apart from a few existing shareholders, all subscribed and the issue which concluded last week saw entry of several new shareholders as well.

“The rights issue received applications for over Rs. 600 million, showing the immense confidence the Sri Lankan and international investors have in the potential of the country’s tourism industry and the trust in the company, despite the current circumstances,” a spokesman for Jetwing Symphony said.

Via funds raised the Company is to rebalance leverage and stabilise the business in its post-pandemic revival.

Jetwing Symphony PLC is a holding company which owns six Jetwing hotels – Jetwing Colombo Seven, Jetwing Lake (Dambulla), Jetwing Yala, Jetwing Kandy Gallery, Jetwing Kaduruketha (Wellawaya), and Jetwing Surf (Pottuvil).

The company was established by Jetwing, Sri Lanka’s premier hospitality brand, to give an opportunity for the general public to benefit from the tourism boom in Sri Lanka in the post-war era.

Jetwing Symphony PLC Chairman Hiran Cooray said: “Over the years, Jetwing has believed in the 4 P’s of tourism sustainability – People, Planet, Peace, and Profit. In order to achieve the first 3 P’s, it is important for any business to be profitable. The high cost of borrowing today coupled with nearly four years of turbulence, made us unsustainable, and we required funding to retire part of the accumulated debt.”

“The faith and commitment shown by both our Sri Lankan and international investors is highly appreciated as the tourism industry will play a leading role in taking Sri Lanka out of the current economic crisis,” Cooray added.

The public float of Jetwing Symphony as at 30 September 2022 was 18% held by 1,053 shareholders. Jetwing Travels held 18.67% followed by R.O.K. International Holdings (18%), and Blue Oceanic Beach Hotel (13%).

Funds sourced from the Rights Issue will go towards investment in the share capital of the subsidiaries of the Company, namely, Jetwing City Ltd., Cultural Heritage Ltd., and Pottuvil Point Ltd., to facilitate the settlement by such companies of amounts due and payable under loans and banking facilities obtained by such companies, with the amount being settled aggregating to Rs. 498 million.

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