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The Sagicor Jamaica Building in New Kingston (File photo)

Sagicor Group Ja to participate in Playa IPO

The Sagicor Jamaica Building in New Kingston (File photo)

On Wednesday, January 6, Playa Hotels and Resorts filed an S-1 form with the United States SEC detailing a proposed initial public offering (IPO). The company said the offer valued between US$100 million and US$300 million in total.

Sagicor Group Jamaica, which already has holdings in the hotel group, disclosed on the day following that it will participate, in the IPO.

The notice, on the Jamaica Stock Exchange website, read, “Sagicor Group Jamaica Limited (SJ) and Sagicor Real Estate X Fund (XFUND) have advised of the pricing of an underwritten public offering of 10,000,000 ordinary shares of Playa Hotels and Resorts N.V. (NASDAQ: PLYA), held by Sagicor Jamaica, at a public offering price of US$5.00 per share.”

“The offering is being conducted concurrently to an underwritten public offering of 25,000,000 new shares by Playa. Deutsche Bank Securities, Bank of America Securities, Citigroup, and Nomura are acting as joint book-running managers for the offering,” SJ futher advised.

(Photo: Playa Group)

Sagicor said that the purchase of the share will take place simultaneously with the transfer of an additional 8,501,000 ordinary shares from Sagicor Jamaica to Sagicor Financial Corporation Limited, for cash consideration, at a price equal to the price offered through the public offering, subtracting commission expenses associated with the public offering.

Sagicor Jamaica’s interest in Playa is under the management of an affiliate company, Jamziv Mobay Jamaica Portfolio Limited (Jamziv), that holds a total of 20,000,000 of Playa’s ordinary shares. These two transactions should, therefore, result in gross proceeds to Jamziv of approximately US$91 million (assuming no exercise of the underwriters’ option to purchase a further 1,499,000 ordinary shares from Sagicor Jamaica).

Both transactions should close on January 11, 2021, subject to customary closing conditions, the company said.

Playa Hotels, meanwhile, plans to list its stock on the Nasdaq Global Select Market under the ticker symbol “PLYA.” 

Playa Hotels owns 13 all-inclusive beach resorts in some of the most popular destinations throughout Mexico, the Dominican Republic, and Jamaica. 

Jewel Runaway Bay was one of two properties in Jamaica that Playa Hotels and Resorts divested in 2020. (Photo: Playa Resorts)

The company was founded in 2006, and is based in Amsterdam, the Netherlands. It reported roughly US$481 million in sales during the 12 months ended June 30, 2016, according to the filing.

Analysis attached to the disclosure said, “The company is entering a crowded — and rapidly changing — hotel industry. Tech start-ups like Airbnb are transforming the way consumers travel, as well as where they choose to stay during their trips.”

They however added, “We believe that our resorts have a competitive advantage due to their location, extensive amenities, scale and guest-friendly design…We believe that we are well-positioned to pursue acquisitions in the all-inclusive segment of the lodging industry and further establish us as a leading owner and operator of all-inclusive resorts,” said Playa in its filing.