SUN Insurance Company Ltd has announced an Initial Public Offering (IPO) of seven million ordinary shares at an offer price of $1.05 a share to interested Fijians.
In his address at yesterday’s announcement and prospectus launch, SUN Insurance chairman Padam Lala said this was an important step for the company and its stakeholders.
“In 1999, we envisioned growing SUN into an industry powerhouse recognised for quality, innovation and service,” Mr Lala said.
“Today, as we celebrate our 25th anniversary, we are proud to share our success with the people of Fiji. We invite every day Fijians to join us as co-owners of the company as we believe SUN can play an important role in helping Fijians build wealth and secure their future.”
A private placement offer prior to the IPO raised $23million and attracted new institutional investors, among them the Unit Trust of Fiji, Fijian Holdings Unit Trust, VB Holdings Ltd and N S Niranjan Holding Pte Ltd.
The founding shareholders have also transferred five million shares on a pro rata basis to the Employee Share Scheme where all employees on the company’s payroll as at December 31 will be beneficiaries in the Trust.
Mr Lala said the company’s decision to go public was made two years ago, when it felt it was time to give back to its support base, the “ground level people, the mums and dads”.
“The directors and shareholders decided it was now time to give something back to them so that they can participate in the success of the company,” he said.
He said the funds raised would be used in a $25m property development project planned for a vacant land next to its headquarters in Flagstaff, Suva.
“SUN Insurance has no debt, we don’t borrow, we invest all our profit back into this country, we have done that for the last 25 years. This fund will be used exclusively for property development from now on. We have a property (next door) and the plan has already been approved, tender processed, it’s a $20-$25m project that we’re starting on the side and there are other projects on the line. As we are a risk company, it’s important that we diversify (to ensure a steady flow of dividend to our shareholders),” Mr Lala said.
To purchase shares, interested mums and dads are to seek advice from any of the three brokerage houses, Kontiki Stockbroking Ltd, which is the lead manager of the IPO, FHL Stockbrokers Ltd and FijiStock Brokers Ltd.
A minimum purchase of 1000 shares is allowed and the offer will close on July 31, 2024, with the company’s listing on the South Pacific Stock Exchange scheduled for August 15.