120 million shares of SUN Insurance (SUN) were listed on the South Pacific Stock Exchange (SPX) yesterday, marking the company’s debut as the 20th security on the exchange. This event ended a five-year hiatus in listings and offers an additional investment option for the public in Fiji.
On its first day of trading, SUN shares closed at $1.20, rising 15 cents from their Initial Public Offer (IPO) price of $1.05. This increase brought the company’s market capitalization to $144 million and raised the total market capitalization of SPX from $3.42 billion to $3.57 billion.
A total of 9,869 shares of SUN changed hands during the trading day. The general insurer had launched its IPO with seven million shares priced at $1.05 each early last month, attracting over 500 Fijian investors and leading to an early closure of the offer period due to oversubscription. Additionally, a private placement before the IPO had raised $23 million and brought in new institutional investors.
The official listing of the company has been hailed as a significant milestone for capital markets in Fiji. Reserve Bank of Fiji governor Ariff Ali highlighted this achievement in his speech, noting the strong investor interest in the market as demonstrated by the successful oversubscription of SUN Insurance shares.
As a registered insurance provider, SUN is now required to comply with SPX regulations and is under the oversight of the Reserve Bank of Fiji. Governor Ali emphasized that this listing will enable SUN to explore more development opportunities and enhance its competitiveness, ultimately delivering sustainable returns to shareholders.
SPX chairman Nitin Gandhi described the listing as a pivotal moment for the exchange, expressing optimism about future listings within the next 12 to 24 months. He noted that SUN’s inclusion would increase SPX’s market capitalization by approximately four percent, providing greater value and depth to the market. The listing also boosts the representation of the insurance sector on SPX, offering investors a broader range of investment opportunities. Gandhi remarked on the IPO’s significant impact in attracting new investors to the exchange, enriching the dynamics of the capital markets.
The listing ceremony was officiated by President Ratu Wiliame Katonivere, with participation from Acting Prime Minister and Minister for Tourism Viliame Gavoka and Assistant Minister of Finance Esrom Immanuel.