GAUNAVOU Investment Company Ltd (GICL) has recently unveiled a share buyback initiative aimed at its shareholders, offering to repurchase shares at 16 cents each, surpassing the current market rate of 15 cents. This strategic move comes as the company prepares for its anticipated public listing on the South Pacific Stock Exchange (SPX).
In a formal announcement via local newspapers, GICL outlined the parameters of the buyback scheme approved by its board. Shareholders who hold 30,000 shares or fewer will have the option to sell all their shares back to the company, while those with more than 30,000 shares may sell up to 10 percent of their holdings.
The board has also proposed amendments to the company’s constitution in line with SPX recommendations, seeking shareholder approval on a new set of Memorandum & Articles of Association to ensure compliance with regulatory standards. A majority endorsement from registered shareholders, particularly those holding at least 75 percent of issued shares during an Extraordinary General Meeting, is essential for the company to progress toward fulfilling SPX requirements.
GICL, established in 1993 by the Suva City Fijian Urban Constituency branch of the Soqosoqo ni Vakavulewa ni iTaukei (SVT) political party, is currently one of three unlisted companies on the Central Share Registry, which manages shareholder affairs for SPX participants. Company secretary Rafaele Kasibulu noted that while the journey to listing on SPX is still underway, it is projected to occur within the next two years as the firm navigates compliance challenges.
This move aligns with a broader trend in the market, highlighted by the recent listing of SUN Insurance, which has seen a renewed interest in public listings and investment opportunities in Fiji. As companies continue to seek access to capital markets, SPX is expected to witness further listings, enhancing liquidity and options for investors. The local economy is showing encouraging signs of growth, fostering a favorable environment for companies aiming to go public.
The efforts by GICL to engage its shareholders through avenues such as the buyback scheme while also planning for future expansion via an SPX listing reflect a proactive approach within this evolving financial landscape. By enhancing its shareholder value and compliance, GICL is poised to contribute to a potentially vibrant stock market environment in Fiji.