With liquidity at record levels and the economy on an upswing, it’s an ideal time for a company to list on the South Pacific Stock Exchange (SPX), said SUN Insurance independent director Inia Naiyaga.
SUN Insurance announced this week its Initial Public Offer (IPO) of seven million shares at $1.05 a share. This decision aims to diversify its business and give back to Fijians after 25 years of service in Fiji.
“The timing is good. It’s good because of two things: one, there’s a lot of liquidity in the market. Secondly, there is a very low interest rate in the market, meaning that interest rates of bank savings and term deposits are low, so it’s better for people to invest in shares or some other investments,” said Mr. Naiyaga.
The SUN IPO will close at the end of the month, followed by two weeks of share allotment, with the flotation of 120 million ordinary shares on SPX scheduled for August 15.
Upon listing, SUN will be the 20th company to list, ending a five-year listing drought on SPX since the last company to go public was Port Denarau Marina in 2019.
Mr. Naiyaga emphasized the need for more companies to list to enhance liquidity in trading.
“There is growing interest in the stock market, and more and more people are taking an interest in it and buying shares,” said the former deputy Reserve Bank of Fiji governor.
“The problem is a lot of those who are buying shares at the stock exchange tend to hold on to the shares. They are institutional investors, so that’s what they do. That’s why if there’s a lot of companies listed on the exchange, more shares are available for people to buy. However, it’s not an easy exercise to list on the stock market, and I understand the stock exchange is reviewing the listing rules to make it simpler for companies to list.”
The SUN Insurance IPO prospectus is now available on the SPX website.