Fiji's superyacht marina, Port Denarau Marina Ltd (PDM) today listed its shares on the Suva-based South Pacific Stock Exchange (SPX) following an oversubscribed Initial Public Offer (IPO) that saw it sell down over 11 million shares, three million more than its initial intention of 8 million.
This has brought 600 new shareholders to the company after Day One of trading.
Data released by SPX today saw a total of 11,640,943 PDM shares with a total value of F$14.95 million changing hands.
That included a special trade of six million shares facilitated at a discounted price of F$1.26 per share and brokers confirmed this was from an institutional investor.
PDM shares opened at its IPO price of F$1.31 and gained 9 cents to end the day at F$1.40 per share.
Griffon Emose, managing director of Kontiki Capital Ltd, parent company of lead broker Kontiki Stockbroking, described the take up as "really good", helped in a big way by the company's already established reputation.
"Just to be clear, this wasn't a capital raising exercise. It was actually a sell down of shares. PDM before this only had one shareholder, from New Zealand, but in order to list on SPX, you have to meet certain criteria. One criteria is you have to have at least 20 per cent of your shares held by the public and you have to have a minimum of 50 shareholders. PDM didn't need the funds as the company is already well funded. So they had to sell down the shares in order to meet the criteria of listing on SPX," Emose said.
He said while most buyers – about 95 percent – were from Fiji, overseas investors also came on board, from New Zealand, Papua New Guinea and the United States of America.
"The minimum was for F$500 worth of shares and we had some that came in with several millions of dollars. Some institutional investors also came in." Emose said.
He said SPX's ability to directly approve foreign investors to buy and sell shares on the stock exchange has made it easier for foreign investors to participate in Fiji's share market.
"SPX is open to everybody and the good thing is the government has delegated to the stock exchange the ability to allow foreign investors to come into the market. Normally, foreign investors would need to obtain foreign investors approval, so that has been delegated to SPX but only for trading in listed companies," said Emose.
PDM director Nigel Skeggs described the day as a special one for the company, which has been in his family for 20 years and under his stewardship since 2006.
"There were several reasons for us choosing to be on the stock exchange but the primary one is that the marina being such an important tourism infrastructure for Fiji, we felt that after 20 years of us developing it, we needed to look at some Fiji ownership. So we really want the public of Fiji to get involved, it was a way of giving back to Fiji and we had a lot of support. And of course, obviously there are the incentives that come with listing on the stock exchange, in particular the 10 percent company tax," Skeggs told IB Online.
PDM is now the first tourism related company to list on SPX and there are hopes that this would be followed by more listings from the sector.
Note: this story was updated at 8.36pm Fiji time.
Fiji’s award winning marina, Port Denarau Marina Ltd (PDML) has launched an Initial Public Offer (IPO) in Fiji, with intention to raise over F$10 million and to list on the South Pacific Stock Exchange (SPX) following the offer’s scheduled closing on the first week of next month.
According to its offer document, available online on SPX, 8 million PDML ordinary shares are now on offer at F$1.31 per share, bringing the proposed total capital to be raised to F$10.48 million.
The 8 million shares on offer represent 20 percent of the company’s issued shares.
Apart from broadening the company’s shareholder base from its current single shareholder, the offer also aims to raise capital to help finance future expansion plans and current developments, some of which are outlined in the prospectus, such as “a new Marina reception, amenities and office block as well as dredging to expand the superyacht marina, both of which are due for completion in the second half of 2019.”
“Since the purchase of the marina assets by Skeggs Group Limited in 1999, PDML has been at the forefront of Fiji’s largest industry, tourism. In its most recent financial year, PDML’s marina on Denarau Island saw some 495,000 tourists, representing over 54% of Fiji’s annual tourist numbers, transiting through our facility,” said David Skeggs, chairman of Skeggs Group Ltd, the sole owner of PDML.
“In addition, the Marina had 23 foreign cruise ships visit and welcomed over 400 yachts and 54 Superyachts to our facilities. These numbers have grown steadily over the years and are set to continue on this trend, reflecting the strength of Fiji tourism as well as the importance of Denarau Island, and the Marina in particular, as the ‘gateway’ for marine tourism.” Skeggs added.
He said over the years, the company has invested significant capital to bring the Marina facilities up to world class standards in their design, ambience, efficiency and safety and every effort is put into ensuring that the Marina’s operations work in harmony with its marine environment.
Recent developments include the reclamation of the foreshore creating over half an acre of additional space for the installation of an architecturally-designed tent structure to extend the main passenger terminal and check-in facilities.
This is in addition to current work underway on the new Marina reception, amenities and office block.
“We are excited to highlight additional developments in the pipeline including the Denarau Marina Mall and Apartments development. All this is part of PDML’s vision of developing a world-class tourism destination designed around the Marina, which acts as an important hub for Denarau Island and Fiji,” said Skeggs.
PDML’s after tax profit during its financial year ended July 31 2018 was $2.89 million, while in the six months ended January 31, 2019, it posted F$1.11million in after tax profits.
The offer period is from July 9 to August 6, 2019 and listing is expected to take place in mid August.
Anyone interested in buying shares is advised to contact a licensed stockbroker.