Bank South Pacific (BSP) is thinking of being listed on the Australian stock exchange (ASX).
Sir Kostas Constantinou, chairman of the bank's board of directors, said the bank intended to call a special meeting of shareholders to seek approval for amendments to its constitution that would allow BSP to apply to join the ASX's official list.
It would be able to obtain dual listing as a result of this.
It's also on the Papua New Guinea stock exchange (PNGX).
“The notice of the meeting is currently subject to advise and approvals, which are expected to be finalised during March 2021,” Sir Kostas said.
The aim of the planned ASX listing, according to BSP Group CEO Robin Fleming, is to gain access to new sources of capital on Australia's main exchange.
“While BSP has been listed since 2003 on the PNGX, there are a number of constraints that BSP faces in sourcing new forms of equity capital,” he said. “Accordingly, BSP is pursuing the proposed listing as a means of mitigating some of these constraints. Access to new sources of capital will allow BSP to explore future growth opportunities. Another benefit of joining the ASX is that it will facilitate increased liquidity for BSP’s shareholders (trading of BSP shares). The ASX is a much deeper (larger pool of investors) and (more) active market than the PNGX. Accordingly, shareholders will find it easier to trade BSP shares on the ASX.”
BSP's visibility would increase if it joined the ASX, according to Fleming.
“It will provide the opportunity to better educate the international marketplace in relation to BSP and PNG,” he said.
