120 million shares of SUN Insurance (SUN) were officially listed on the South Pacific Stock Exchange (SPX) board yesterday, marking the company as the 20th security on the exchange and ending a five-year drought in new listings. This development provides additional investment options for the public in Fiji.
On its inaugural trading day, SUN shares closed at $1.20, a rise of 15 cents from the Initial Public Offering (IPO) price of $1.05, resulting in a total market capitalization for the company of $144 million. The overall market capitalization of SPX increased from $3.42 billion to $3.57 billion.
During the trading session, a total of 9,869 SUN shares were exchanged. The general insurer had launched its IPO last month with seven million shares at $1.05 each and drew the interest of over 500 investors, leading to an early closure of the offer period due to oversubscription. Additionally, a private placement before the IPO raised $23 million and garnered interest from new institutional investors.
The company’s listing is seen as a significant step forward for Fiji’s capital markets. In a speech at the listing event, Reserve Bank of Fiji Governor Ariff Ali emphasized the importance of this milestone for the economy, highlighting that SUN’s successful IPO reflects a robust investor interest within the developing capital market.
As a licensed insurance company, SUN will now comply with both SPX regulations and the oversight of the Reserve Bank of Fiji. Governor Ali noted that the listing will help the company explore further development opportunities, enhance competitiveness, and deliver sustainable returns to shareholders.
SPX Chairman Nitin Gandhi described the listing as a crucial achievement for the exchange, expressing optimism for additional listings in the coming 12 to 24 months. He indicated that the addition of SUN Insurance would bolster the market’s capitalisation by approximately four percent and diversify investment options available to investors.
The officiation of SUN’s listing was attended by President Ratu Wiliame Katonivere, Acting Prime Minister and Minister for Tourism Viliame Gavoka, and Assistant Minister of Finance Esrom Immanuel.