The first initial public offering of 2014 is here. Margaritaville Caribbean is taking its Grand Turk operations public aiming to raising US$2.1 million at a price of US$0.10 per share. Here’s what you need to know.
What You Need To Know In Less Than 10 Minutes
Margaritaville (Turks) Ltd a subsidiary of the Margaritaville Caribbean Group of companies. Margaritaville (Turks) Ltd is the company that will be going public and this will be a US$ listing on the main market (not junior market). So it is clear, that their aim is not to get the tax break benefits. Here in this (less than 10 minutes) interview listen as CEO and CFO of Margaritaville speak about the company and the offering, while Chorvelle Johnson, from the lead broker Proven Wealth Ltd shares her view on why you should get it while it’s hot.
Click the play button below to here the interview.
Here is a full breakdown of the programme and what they speak about
- 00:13 – Introduction to the company
- 00:58 – Why are they coming to the market, how much do they plan to raise and the purpose of the fund raising?
- 1:43 – CFO Roland Clarke speaks about the pricing (7x to 8x earnings)
- 2:19 – Their dividend policy (up to 33%)
- 2:54 – Their Cayman operations (one of their biggest)
- 3:24 – Why Proven Wealth Ltd and why now (to meet Margaritaville’s need and investors with US$ needs)
- 4:17 – How difficult will it be to raise the funds? (they project high demand since it is a US$ investment)
- 4:44 – How can you buy into the issue
- 5:09 – CFO speaks to earnings projections (US$1 million projected)
- 6:07 – Initiatives being pursued (another section of the property being opened, bar and food section, and new lines of business)
- 7:07 – CEO’s word to prospective investors (operating profit up every year since 2009 from US$119 thousand to US$1 million projected)
- 8:35 – Chorvelle Johnson speaks to the market in Turks and the benefit of diversification
Here’s a little more about the company, from their prospectus.
The Company is a part of the Margaritaville Caribbean Group of companies. 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 1995. The concept for the Group’s restaurants was developed by two Jamaican entrepreneurs including the Chief Executive Officer and founding Shareholder Ian Dear nearly two decades ago, based on his experience in the hospitality and real estate industries. The concept focused on creating a place where both local customers and tourists could enjoy food, drink and a unique leisure experience, where they could relax and have a good time.
The interview includes
- Ian Dear – (Chief Executive Officer and Chairman of Margaritaville Caribbean, the holding company of the Company and its Group)
- Roland Clarke – Chief Financial Officer (Margaritaville)
- Chorvelle Johnson – President and CEO (Proven Wealth Ltd)
- Ralston Hyman – Host (Power106FM)
Note the audio starts a little low for the first first 3 seconds or so.
What do you think about this IPO? Have you ever been to Margaritaville?