GAUNAVOU Investment Company Ltd (GICL) has announced a share buyback initiative designed to benefit its shareholders, offering to repurchase shares at 16 cents each, which exceeds the current market rate of 15 cents. This strategic decision comes as GICL prepares for its anticipated public listing on the South Pacific Stock Exchange (SPX).
In a formal announcement made through local newspapers, GICL detailed the buyback program that has been approved by its board. Shareholders owning 30,000 shares or fewer will have the opportunity to sell all their shares back to the company, while those holding more than 30,000 shares may sell a maximum of 10 percent of their holdings.
Additionally, the board has proposed amendments to the company’s constitution in alignment with SPX guidelines. They are seeking shareholder approval for a new set of Memorandum & Articles of Association to comply with regulatory requirements. A majority endorsement from registered shareholders—specifically, those holding at least 75 percent of issued shares—will be vital during an Extraordinary General Meeting for the company to move forward in meeting SPX prerequisites.
Founded in 1993 by the Suva City Fijian Urban Constituency branch of the Soqosoqo ni Vakavulewa ni iTaukei (SVT) political party, GICL is currently one of three unlisted companies recorded on the Central Share Registry, which oversees shareholder activities for SPX participants. Company secretary Rafaele Kasibulu noted that while the process toward an SPX listing is ongoing, it is expected to materialize within the next two years, as the firm addresses compliance challenges.
This initiative aligns with a broader trend within the market, marked by the recent listing of SUN Insurance that has reinvigorated interest in public offerings and investment opportunities in Fiji. As companies increasingly seek access to capital markets, further listings on SPX are anticipated, contributing to enhanced liquidity and investment options in the area. The local economy is exhibiting promising signs of growth, creating a favorable backdrop for companies aiming to enter the public domain.
GICL’s proactive approach to engage its shareholders through the buyback program and its plans for a future SPX listing indicates a commitment to enhancing shareholder value. This forward-thinking strategy positions GICL to play a significant role in the evolving financial landscape of Fiji, potentially invigorating the stock market and attracting further investment.