The Margaritaville Jamaica franchise, which operates clubs and restaurants along the north coast, plans to list on the Jamaica Stock Exchange through an initial public offering of shares.
The Jamaica operations include locations in Montego Bay, Negril and Ocho Rios, three resort destinations. The company has chosen Mayberry Investments Limited as its lead adviser and broker.
In addition to debt reduction, the IPO proceeds will allow the company to invest in eco-friendly initiatives.
“The consideration to take Margaritaville Jamaica public is grounded in a strategic vision that encompasses growth, economic and environmental sustainability and adaptability in the post-pandemic world,” said Ian Dear, CEO and chairman of Margaritaville Caribbean Limited.
The Jamaican operations started in 1995, but the wider Margaritaville Caribbean group was created in 2001 to incorporate operations in Jamaica, Grand Cayman, St Thomas and Turks & Caicos Islands. The group operates a franchise of the US-based Jimmy Buffett’s Margaritaville formed by the late country pop-star of the same name.
Margaritaville Caribbean Limited is privately held but the group already has two member companies publicly trading on the JSE – Margaritaville Turks Limited which operates in Grand Turk, listed on the USD market in 2014 and later crosslisted to the main JMD market; and Jamaica-based Express Catering Limited, which listed on the junior market in 2017.
The group Margaritaville Caribbean oversees a workforce of about 1,200 employees across the region.
Margaritaville Jamaica could opt to list on either the JSE main market or junior market, but the latter would restrict the amount of capital it could raise to $500 million. Dear said that Mayberry would decide on the timeline and value to raise. The brokerage is also arranging a private debt raise for an entity within the group.
“So, we will see how that plays out and we will communicate that when the time is right,” said Dear.
Mayberry said later that it was aiming for a December launch of the IPO.
Margaritaville Jamaica is seeking to raise capital at a time when both the travel market and hotel sectors are growing. That could translate into more business for the restaurants and the company wants to position itself to cash in on it.
“Quite frankly, we are seeing opportunities in existing spaces to upgrade the facilities we have, in terms of additional offerings to drive additional revenue to drive shareholder value,” said Dear on Tuesday.
He said the brand has seen a full rebound from the COVID-19 pandemic, and demand is rising.
“All our brands have returned to profitability,” Dear added.