120 million SUN Insurance (SUN) shares were added to the South Pacific Stock Exchange (SPX) board yesterday as the company became the 20th security to list on the exchange, ending a five-year listing drought and providing another option for Fiji’s investing public.
SUN shares closed at $1.20 on its first day of trading yesterday, gaining 15cents from its Initial Public Offer (IPO) price of $1.05 and pushing up its market capitalisation to $144million and the total SPX market capitalisation to $3.57billion from $3.42b on Wednesday.
A total of 9869 SUN shares changed hands on the day.
The general insurer launched its IPO of seven million shares at $1.05 a share early last month and attracted over 500 Fijian investors, forcing it to close its offer period early due to oversubscription.
A private placement prior to the IPO had raised $23million and attracted new institutional investors.
The company’s official listing yesterday was considered a watershed event for Fiji’s capital markets.
“Today is a significant progress for our economy,” said Reserve Bank of Fiji governor Ariff Ali in his speech at the event.
“SUN’s listing indicates a strong investor appetite in a small but developing capital market which was evidenced a few weeks ago when SUN Insurance announced the early closure of its IPO after a successful oversubscription of its shares.”
Apart from compliance now to SPX rules, SUN is also under the regulatory oversight of RBF as a licensed insurance company.
“This listing will actively capture more development opportunities, strengthen the company’s competitiveness and strive to bring higher and sustainable returns to shareholders and investors within the regulatory ambit of the Reserve Bank of Fiji and the SPX,” Mr Ali said.
SPX chairman Nitin Gandhi said SUN’s listing marked an important milestone for SPX.
“We’re optimistic that this will be the first of many listings in the next 12 to 24 months.
“The inclusion of SUN Insurance is set to increase our market capitalisation of approximately four percent, adding value, depth to our market.
“The listing also enhances the representation of the insurance industry on SPX, crucial in offering our investors a diverse range of investment opportunities. “IPOs are powerful catalysts for market growth and I’m pleased to share that SUN Insurance’s IPO has attracted hundreds, in fact, thousands of new investors to SPX, broadening the investor base and contributing to the overall dynamics of the capital markets,” Mr Gandhi said.
SUN’s SPX listing was officiated by the President Ratu Wiliame Katonivere and also attended by Acting Prime Minister and Minister for Tourism Viliame Gavoka and Assistant Minister of Finance Esrom Immanuel.
