On first day of trading for Seychelles Securities Exchange |09 August 2013
Sacos’ stock jumps to 13%
Sacos’ shares almost doubled two hours after being listed for the first time on Trop-X, the Seychelles Securities Exchange.
State Assurance Corporation of Seychelles (Sacos) chief executive Antonio Lucas rang the bell to open the market announcing the listing yesterday morning at the Trop-X offices at the Eden Plaza as Vice-President Danny Faure; Minister for Finance, Trade and Investment Pierre Laporte; Foreign Affairs Minister Jean-Paul Adam, and Natural Resources Minister Peter Sinon as well as other guests from the Seychelles International Business Authority, Sacos, the financial sector and Trop-X staff joined the celebrations to mark the company's first day of trading.
It was indeed a proud moment for the Sacos Group which became the first company to be listed on the first day of trading for the Seychelles Securities Exchange and Minister Laporte said the development of capital markets for Seychelles reflects the great steps that the country has taken in its economic reform agenda.
Congratulating both Sacos, a Seychellois company with already existing Seychellois shareholders, and Trop-X on this first listing, Minister Laporte said: “Seychelles continues to review and improve the business environment in Seychelles, taking a facilitative approach whereby all economic actors are able to participate and recommend initiatives to government.”
He added that the ministry of finance remains committed to ensuring the development of Seychelles as a hub for financial services within the region and that the launch of the Seychelles Securities Exchange is part of the foundation of this strategy.
“Government will continue to encourage businesses that it holds stake in to list on the exchange as a means of government eventually exiting as a player within the private sector,” Minister Laporte noted, adding it is timely that the Seychelles Securities Exchange has launched its trading platform after Siba has transformed itself to the Financial Services Commission.
Trop-X managing director François Venter described the occasion as a milestone in the development of the Seychelles financial services sector, noting that this venture has been a culmination of three years’ work.
Mr Venter said that Trop-X intends to be a major catalyst to the future growth of the financial services industry in Seychelles and make financial services the biggest revenue earner here over the next five to 10 years.
“An exchange is the heart and pulse of any financial services industry and we have had approaches from international companies, accountants and banks wanting to set up offices here. The exchange provides and is a natural conduit to all of these industries,” said Mr Venter who noted that the Sacos Group is a fitting first listing for Trop-X as it is one of the first parastatals to be privatised and is the holding company of subsidiaries which hold two out of four of the domestic insurance licenses issued in Seychelles.
When he addressed the gathering, Michel Felix, chairperson of Sacos’ board of directors, said listing on the exchange will provide Sacos with numerous benefits. These include creating a transparent market with liquidity which will ensure an accurate valuation of the company on an ongoing basis, enhancing the market value of the company, and enhancing investor and general public awareness of the company and its business and place in the insurance and investment sector.
“Sacos has chosen to list at this time as we believe that listing on the exchange tells our investors and our partners that we adhere to international best practice in terms of business operations and regulations. This is an important aspect in being able to extend our coverage to the wider region allowing Seychelles to provide insurance and reinsurance services throughout the region. Sacos intends to continue rolling out products that are specifically geared towards the Seychelles but hopes to expand its reinsurance business within the region,” said Mr Felix.
He added that Sacos has been a successful company as it has continued to make profits since being incorporated in 2005.
Trading under the ticker symbol SAC, Sacos completed its first trading day on the Seychelles Securities Exchange on a positive with the company’s stock closing at R68 yesterday, 13% percent above its opening price of R60.