The South Pacific Stock Exchange (SPX) is gearing up for a revitalized IPO market, with expectations of at least one company listing before the year concludes. Sheraj Obeyesekere, the CEO of SPX, indicated that the successful IPO of Sun Insurance in August last year has reignited interest among companies contemplating public listings. This marked the end of a five-year drought after the last listing of Port Denarau in 2019.
Obeyesekere noted that the successful performance of Sun Insurance, which was oversubscribed, has encouraged more businesses to start exploring the public listing process. “After the long wait for listings, the successful IPO proved that there is demand for new investments in the economy,” he stated. He also highlighted that the recent listing forum organized by SPX attracted significant interest from private and family-owned businesses, eager to learn about the advantages of going public.
Two companies are said to be in advanced stages concerning their listing process this year. These include at least one expected equity listing and another company considering issuing a corporate bond similar to the recent move made by Fijian Holdings Ltd (FHL) for its FHL Tower project. The SPX has engaged with these firms to facilitate their entry into the market.
The current financial landscape presents an ideal climate for companies looking to go public, reinforced by the need for increased liquidity and investment opportunities in Fiji. Obeyesekere expressed optimism, stating, “We should see at least one listing shortly, if not two in a best-case scenario.”
This positive momentum not only signifies a turning point for the SPX but also highlights the renewed interest from investors in share markets. The upcoming listings and the proactive measures taken by SPX offer promising prospects for economic growth and a more vibrant investment culture in Fiji. By fostering public awareness of share investments and revamping its listing rules, the SPX aims to create a supportive environment conducive to attracting more organizations to the marketplace.
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