120 million shares of SUN Insurance (SUN) were listed on the South Pacific Stock Exchange (SPX) yesterday, marking the company as the 20th security on the exchange. This listing ended a five-year hiatus and provided an additional investment option for the public in Fiji.
On its first trading day, SUN shares closed at $1.20, reflecting a 15-cent increase from the Initial Public Offer (IPO) price of $1.05. This rise brought the company’s market capitalization to $144 million, while the total market capitalization of SPX increased to $3.57 billion from $3.42 billion earlier in the week.
A total of 9,869 SUN shares were traded on the first day. The general insurer launched its IPO of seven million shares at $1.05 last month, drawing interest from over 500 Fijian investors and prompting the early closure of the offer due to oversubscription.
Before the IPO, a private placement had raised $23 million and attracted new institutional investors. The official listing is seen as a significant milestone for Fiji’s capital markets.
“Today marks a significant step for our economy,” stated Reserve Bank of Fiji Governor Ariff Ali during the listing event. “SUN’s listing reflects robust investor interest in our evolving capital market, highlighted by the successful oversubscription of its shares.”
Alongside complying with SPX regulations, SUN is regulated by the Reserve Bank of Fiji as a licensed insurance company. Governor Ali emphasized that the listing would open up more development opportunities, enhance the company’s competitiveness, and aim for higher sustainable returns for shareholders and investors within the regulatory framework.
SPX Chairman Nitin Gandhi highlighted the importance of SUN’s listing for the exchange. “We are hopeful that this will be the first of many listings in the upcoming 12 to 24 months,” he said.
He added that the inclusion of SUN Insurance would raise SPX’s market capitalization by approximately four percent, adding depth and value to the marketplace. The listing is also expected to enhance the representation of the insurance sector on SPX, providing a broader range of investment options for investors. Gandhi noted that the IPO has drawn hundreds, even thousands, of new investors to SPX, enriching the overall dynamics of capital markets.
The official listing ceremony was attended by President Ratu Wiliame Katonivere, Acting Prime Minister and Minister for Tourism Viliame Gavoka, and Assistant Minister of Finance Esrom Immanuel.