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Financial News

Apr 2014 Financial News

Margaritaville Turks secures target funding

Apr 02, 2014

The Margaritaville Turks initial public offering was oversubscribed and raised just under US$2.2 million, the lead broker said Monday.

Margaritaville Turks Ltd (MTL), a Jamaican-owned restaurant operation in Turks and Caicos, will apply for listing on the US Dollar Market of the Jamaica Stock Exchange.

The company is a 100 per cent direct subsidiary of Margaritaville Caribbean, which is incorporated in the Bahamas and owned by Ian Dear and partners.

Margaritaville Caribbean also plans to list its preference shares on the JSE by introduction.

The proceeds of the MTL offer are largely expected to finance working capital needs and the roll-out of Marga-ritaville's proprietary South Beach Bar and Grill brand.

Margaritaville Turks, which has been in business since 2006, operates a 500-seat restaurant and a swim-up bar.

MTL offered 21,156,555 ordinary shares under the IPO at a price of US$0.10 per share. The offer closed with a total of 214 applications for 21,178,100 units.

Parent company Margari-taville Caribbean will retains 68.66 per cent ownership amounting to 46.34 million of 67.5 million shares.

"Not only have we met our target, but the offer has been oversubscribed; this is a clear indication of the level of confidence that our investors have in us," said Dear in a release issued by broker, Proven Wealth Limited.

Cruise ship arrivals

"MTL will be the first major listing on the Jamaica Stock Exchange this year (2014) and the second United States Dollar listing on the Jamaica Stock Exchange following Proven investments Ltd itself," said Proven Wealth CEO Chorvelle Johnson.

MTL is betting on a 25 per cent increase in cruise-ship arrivals in TCI to one million visitors in order to boost revenues, which in 2013 fell to US$4.5 million from US$4.8 million the year before.


Source:
Avia Collinder, Business Reporter
business@gleanerjm.com
Jamaica Gleaner
Wednesday April 2, 2014

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