JKH Unveils Ambitious City of Dreams Project, Offers New Shares

News Today: John Keells Holdings to Offer Shares for City of Dreams Sri Lanka

John Keells Holdings (JKH) has announced a plan to offer 150,263,595 shares to existing shareholders at 160 rupees per share, aiming to raise 24 billion rupees. The proceeds from this rights issue will fund the ‘City of Dreams Sri Lanka’ integrated resort, a project previously known as Cinnamon Life, developed by Waterfront Properties Ltd.

In a stock exchange filing, JKH stated, “The proceeds will support the Company’s financing obligations, which have increased due to the higher than anticipated equity funding requirement of the Project. This funding is required to bridge the impacts of the delayed cash flow generation from operations due to the deferment of the commencement date, including the gaming operations.”

The capital raised through this rights issue will also strengthen JKH’s balance sheet by reducing its levels of leverage, thereby providing the company greater flexibility in its future investments. The new shares will be issued in the proportion of 1 for every 10 existing shares.

The City of Dreams project is poised to become a major landmark in Sri Lanka, attracting both local and international visitors. The integrated resort will feature luxurious accommodations, entertainment options, and gaming facilities, contributing significantly to the country’s tourism sector.

JKH’s decision to raise funds through a rights issue demonstrates its commitment to ensuring the successful completion of the City of Dreams project. By bolstering its financial stability, the company aims to navigate the challenges posed by the delayed project timeline and enhance its capacity for future growth.

This strategic move by JKH is expected to generate significant interest among shareholders and investors, positioning the City of Dreams as a pivotal development in Sri Lanka’s economic landscape.