Kingston Live Entertainment (KLE) plans to raise J$94.6 million from its initial public offer selling about one-quarter of the company which operates Fiction nightclub and Usain Bolt's Tracks and Records.
The entertainment group, which plans to list on the local stock exchange this month, will also pursue additional ventures including a gaming lounge called Secrets, sandwiched between its flagship club Fiction and restaurant, Tracks and Records.
It also plans to build a 6,000 square-foot club in Portmore, St. Catherine called FAMOUS.
It also plans a "lifestyle themed villa" called BESSA on eight acres of beach front land on the north coast, costing US$7.6 million.
The listing will offer 27 million shares to the public at $3.70 each, which is a future price to earning ratio of six to seven times, according to main broker Pan Caribbean.
KLE at just three years old made some J$139.4 million in total revenues in its December 2011 year end or 16 per cent more than year earlier levels, according to a company prospectus released at a press conference in Kingston last night.
However, its one off costs led it to a $7.7 million comprehensive loss.
"The Jamaica Stock exchange junior market offers us a great opportunity to raise the capital needed to execute our development strategy," stated Gary Matalon, KLE CEO.
The money raised will pay debt and assist in funding its future ventures including
Bessa. KLE currently employs about 109 persons. Fiction opened in 2008 and Tracks and Records opened last year.