Margaritaville (Turks) Initial Public Offer (IPO) closed on Friday, March 28 after just exceeding the amount offered for sale.
The IPO opened on Monday, March 3, 2014 with an offer of 21,156,555 shares, at US$0.10 per share. The offer closed with a total of 214 applications for 21,178,100 units and the total amount raised was US$2,117,810. The amount fell short of an approximate US3 million the company was hoping to get which would have meant the sale of additional existing shares.
Chorvelle Johnson, President & CEO of PROVEN Wealth, brokers for the issue, stated that “Margaritaville (Turks) Ltd will be the first major listing on the Jamaica Stock Exchange (JSE) this year and will also be the second United States Dollar listing following PROVEN Investments.” However, varies from what was stated in the prospectus that it would be listed on the Main Market of the JSE.
Margaritaville (Turks) is a part of the Margaritaville Caribbean Group of Companies and a wholly owned subsidiary of Margaritaville Caribbean prior to the Invitation. The Group operates the Margaritaville chain of restaurants in various Caribbean destinations, inclusive of the flagship restaurant launched on the “Hip Strip” in the centre of Montego Bay, Jamaica.
In 2006, the company began operations in Turks and Caicos at the Grand Turk Cruise Centre which is a minutes walk from the cruise ship pier. On the property, there is a mixture of thatched roof restaurants and a swim-up bar that serves Jimmy Buffet Margaritaville’s signature flavours of Margaritas. The Company’s food service operation is complemented by the sale of beverages inclusive of the Margaritaville USA’s proprietary beer, Landshark, and branded apparel, bar ware, and other items. The establishment is well supported and it is expected that the number of visitors will increase from 750,000 recorded for the calendar year 2013 to 1 million persons in calendar year 2014.
Margaritaville (Turks) Ltd is in the process of making an application to be listed on the Jamaica Stock Exchange.
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