Investors flock to KLE
Kingston Live Entertainment (KLE) Group received an overwhelming response from investors seeking equity in the Fiction Lounge and Usain Bolt's Tracks & Records restaurant operator.
The company's initial public offering (IPO) of 27 million shares was fully subscribed from Monday afternoon, said lead broker Pan Caribbean Financial Services (PanCaribbean). PanCaribbean said it closed the offering only eight minutes after its official opening at 9:58 am yesterday, having received 193 applications totalling $107.3 million or 13 per cent above the $94.6 million KLE had targeted to raise.
"Our client, the KLE Group, was thrilled with the work done by PanCaribbean's Investment Banking Division that led to the successful completion of the transaction. KLE's new shareholders, including myself, have gotten 'a bit of the Bolt' and we expect these shares to be listed within 30 days on the Junior Market," said PanCaribbean President and CEO Donovan Perkins.
PanCaribbean, after going through the applications, will, within three days, announce the basis of the allotment of KLE Group's shares as required by the Jamaica Stock Exchange (JSE). KLE will then make its application for admission to the JSE Junior Market and the listing of its shares, it was announced yesterday.
KLE has said the move to list on the Junior Market will help the company meet its goal of becoming a dynamic entertainment group. Part proceeds of the public offering will go towards expanding Tracks & Records, opening its new "Famous Nightclub" in Portmore and working capital for the Secret Room gaming lounge, the company has said.
A joint venture project in Oracabessa along with majority partner, Sagicor Life Jamaica, is also in the works.
"The KLE Group is honoured to have our new shareholders on board. Our team is energised as we gear up to pursue our plans for growth under the guidance of our board," said Gary Matalon, KLE Group's CEO.