IPOs open door for new investors

Initial public offerings provide a transparent and regulated way for companies to raise equity capital, and for investors to par­ticipate in company ownership, say South Pacific Stock Exchange.

Chief executive officer Sheraj Obeyeekere said an initial public offering took place in the primary market, where shares were issued by the company, while the second­ary market allowed investors to buy and sell shares with each other after listing.

For many new investors, IPOs could also serve as an accessible en­try point into share ownership, Mr Obeyesehere said.

"We are seeing growing interest from Fijian private companies con­sidering issuing shares to the pub­lic, which is expanding choice and access for investors.

After a five-year period without IPOs, the return of public offerings in 2024 and their continuation into 2025 and 2026 reflect renewed mo­men tum in the market.

The Shreedhar Motors IPO forms part of the broader activity, provid­ing investors with another opportu­nity to consider. For many new investors, IPOs could also serve as an accessible entry point into share ownership