A total of 120 million shares of SUN Insurance (SUN) were added to the South Pacific Stock Exchange (SPX) yesterday, marking the company’s entry as the 20th security on the exchange. This listing ends a five-year drought and presents a new investment option for the people of Fiji.
On its debut trading day, SUN shares closed at $1.20, which is a 15-cent increase from its Initial Public Offer (IPO) price of $1.05. This rise elevated the company’s market capitalization to $144 million, contributing to an increase in the overall SPX market capitalization from $3.42 billion to $3.57 billion.
During the trading session, 9,869 shares of SUN changed hands. The company had launched its IPO for seven million shares at $1.05 each last month, attracting over 500 investors and prompting an early closure of the offer period due to high demand.
Prior to its IPO, SUN conducted a private placement that raised $23 million, gaining interest from new institutional investors. The official listing was hailed as a significant moment for Fiji’s capital markets.
Reserve Bank of Fiji governor Ariff Ali remarked on the occasion, stating, “Today is a significant progress for our economy,” highlighting the strong investor interest in the capital market evidenced by the oversubscription of SUN’s shares during its IPO.
As a licensed insurance company, SUN is not only subject to SPX regulations but also regulated by the Reserve Bank of Fiji. Governor Ali emphasized that the listing would enable the company to pursue more development opportunities, enhance competitiveness, and provide sustainable returns for shareholders within the regulatory framework.
SPX chairman Nitin Gandhi noted SUN’s listing as a major milestone for the exchange and expressed optimism for further listings in the upcoming 12 to 24 months. He mentioned that the inclusion of SUN would boost the market capitalization by approximately four percent, enhancing market depth and offering a broader range of investment opportunities.
Mr. Gandhi added that SUN Insurance’s IPO had effectively attracted a significant number of new investors to SPX, improving the overall dynamics of the capital markets.
The listing was officiated by President Ratu Wiliame Katonivere and was attended by Acting Prime Minister and Minister for Tourism Viliame Gavoka, as well as Assistant Minister of Finance Esrom Immanuel.