With liquidity at record levels and the economy gaining momentum, it is an opportune time for companies to consider listing on the South Pacific Stock Exchange (SPX), according to SUN Insurance independent director Inia Naiyaga.
SUN Insurance has announced the launch of its Initial Public Offering (IPO) of seven million shares at $1.05 each, a strategic move aimed at diversifying its business and giving back to Fijians after 25 years of service in Fiji.
“The timing is favorable due to two key factors: there is significant liquidity in the market, and interest rates are currently very low. This means that savings and term deposit rates are not as attractive, making investment in shares a better option,” said Mr. Naiyaga.
The SUN IPO will close at the end of the month, with a two-week share allotment period to follow. The listing of 120 million ordinary shares on SPX is scheduled for August 15.
Upon listing, SUN Insurance will become the 20th company on the SPX, ending a five-year hiatus in new listings since the public offering of Port Denarau Marina in 2019.
Mr. Naiyaga emphasized the need for more companies to list to increase liquidity in trading. “There is a growing interest in the stock market, with more people buying shares. However, many institutional investors tend to hold onto their shares, limiting liquidity. If more companies are listed, more shares will be available for trading,” he noted. He also mentioned that the stock exchange is currently reviewing its listing rules to make the process more accessible for companies.
The prospectus for the SUN Insurance IPO is now available on the SPX website.