GAUNAVOU Investment Company Ltd (GICL) has announced a share buyback program for its shareholders, offering shares at 16 cents, which is slightly above the current market price of 15 cents. This initiative is part of the company’s efforts to prepare for a public listing on the South Pacific Stock Exchange (SPX). The buyback offer allows shareholders holding 30,000 shares or fewer to sell all their shares to the company, while those with more than 30,000 shares can sell up to 10 percent of their current holdings.
In a statement released in local newspapers, GICL expressed that the company’s board has approved this voluntary share buyback scheme. Additionally, GICL aims to obtain shareholder approval for a new company constitution aligned with SPX guidelines, with minor amendments as necessary. This new constitution is crucial for securing regulatory approval and moving forward with the public listing. Company Secretary Rafaele Kasibulu stated that majority endorsement from shareholders at an Extraordinary General Meeting is essential for advancing the company towards SPX compliance.
GICL, established in 1993 by the Suva City Fijian Urban Constituency branch of the Soqosoqo ni Vakavulewa ni iTaukei (SVT) political party, has been working on enhancing its business operations with the aim of eventually listing on the SPX. It remains one of three unlisted companies managed under the Central Share Registry, a subsidiary of the SPX focused on shareholder matters.
The company’s push towards offering more investment opportunities to its shareholders coincides with a broader trend in the region. Recent developments have shown a revitalization in interest for public listings, as observed with SUN Insurance’s Initial Public Offer (IPO) earlier this year, which marked a significant achievement following a five-year lull in new listings on the SPX.
As GICL navigates the path towards compliance and listing on the SPX, the potential for enhanced liquidity and investment options in Fiji’s capital market holds promise not only for the company’s growth but for the overall market vitality in the region.
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