John Keells Holdings PLC (JKH) has successfully concluded its Rights Issue, raising Rs. 27.43 billion, exceeding the initial target of Rs. 24.04 billion. The company had initially offered 150.26 million new ordinary shares at Rs. 160 per share on a 1-for-10 basis, with the proceeds intended to support critical projects, including its ambitious "City of Dreams Sri Lanka" resort development.

This Rights Issue is part of a broader corporate strategy that JKH unveiled earlier, aimed at enhancing financial stability and ensuring the successful completion of ongoing projects. The funds will be directed towards Waterfront Properties (Private) Limited (WPL), a JKH subsidiary responsible for developing the "City of Dreams Sri Lanka" integrated resort, formerly known as the 'Cinnamon Life Integrated Resort'. The project had encountered delays in cash flow generation, particularly in its gaming operations, leading to higher-than-expected funding needs.

JKH has also secured a strategic partnership with Melco Resorts & Entertainment Limited, a major player in the global casino and integrated resort sector. Melco has committed USD 125 million for the fit-out and equipping of the gaming facilities at the resort. This partnership follows the introduction of a structured regulatory framework for casino licensing in Sri Lanka.

The "Cinnamon Life" hotel and its facilities are scheduled to open in October 2024, with the retail mall and gaming operations to be launched in phases, culminating in mid-2025.

In addition to the Rights Issue, JKH’s Board of Directors has proposed a Share Sub-division, which will increase the number of shares tenfold, enhancing liquidity and making the stock more accessible to a wider range of investors. The sub-division, contingent on shareholder approval, will take place after the Rights Issue, and will raise the total number of shares from 1.65 billion to over 16.5 billion.

The successful oversubscription of this Rights Issue demonstrates strong investor confidence in JKH’s long-term vision and its capacity to execute major development projects.

Keells Consultants (Private) Limited, acting as the secretaries, confirmed the subscription details to the Colombo Stock Exchange.