Oct 2010 Financial News

Dolphin Cove to seek $150-$250m in IPO. Issue expected before year end.

Oct 25, 2010

Dolphin Cove will seek between $150 and $250 million in the initial public issue of shares representing approximately 20 per cent of the company. This was disclosed by Donovan Perkins, president and CEO of Pan Caribbean, lead brokers of the first tourism company listing on the Jamaica Stock Exchange (JSE) Junior Market.

Perkins said following the announcement on Wednesday that Dolphin Cove will be going public, interest in the Junior Market initial public issue has been very strong.

"We expect interest in Dolphin Cove's listing to be strong given the calls received since Mr Burrowes went public with his intention to list and identified Pan Caribbean as his advisor and broker," Perkins told Sunday Finance.

He also said that the final amount being considered was not yet finalised.

"It is important to note that this is an issue of shares, not an offer of shares," Perkins said. "An issue is where the company creates new shares, sells them to the public, and the cash goes to the company. An offer is where existing shareholders sell their existing shares, and the proceeds go to the shareholders, not the company."

He did not give a date for the issue but disclosed that the issue will happen before the end of the year.

In addition to the recent $500 million investment undertaken by Stafford Burrowes, president of Dolphin Cove, in the new Dolphin Cove facility in Hanover, called Dolphin Cove Negril, Burrowes said he plans to invest another $40 million on expansion of the attractions offered by the facilities including a zip line, waterslide, expanding the beach and building an interactive free flying aviary. He said expansion plans also include the purchase of additional land to expand parking facilities in Ocho Rios.

Perkins said Dolphin Cove's expansion plans are in line with the prospects for growth within the tourism industry of which it is a part which makes it a good buy for investors.

"Dolphin Cove is a strong brand, has excellent management, and participates in our tourism industry where Jamaica is internationally competitive. It operating results as the prospectus will reflect, indicates a company with attractive historical profits. The company recently expanded its operations to Hanover, strategically located beside Fiesta, which is adding another 800 suites to its existing over 1000 rooms. This is a great opportunity to participate in its success," Perkins said.


Source:
Jamaica Observer
Sunday October 24, 2010

http://www.jamaicaobserver.com/business/Dolphin-Cove-to-seek-150-250m-in-IPO_8078207