Post-listing outlook difficult, says bottler

July 25, 2009 03:14:16 PM

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Newly-listed water bottling company Pleass Beverages and Packaging says it is facing challenges seeking markets for its products and capital for expansion post-listing.

Speaking at a workshop on corporate governance in Denarau, Nadi, Pleass managing director Warwick Pleass said key in achieving these goals are recognition and reputation in overseas markets.

“Fiji is facing increased reluctance to trade due to our increased sovereign risk. This risk is not just in raising capital, but in maintaining relationships with international vendors and customers. But like with any problem there are always opportunities….. and I would argue significant ones at that. They are a whole new debate,” Pleass told participants at the workshop, organised by the CPA (Certified Practising Accountant) Australia’s Fiji branch.

Pleass Beverages listed on the South Pacific Stock Exchange early this year in an oversubscribed initial public offering.

“The aim was most certainly to list and in doing so, to take the company from a family run business to one with a broad base of shareholders,” said Pleass.

“This is the key point; we felt too low profile, too vulnerable to risks, outside threats and ever changing governmental and regulatory environments. We wanted a broader and deeper board with more corporate “friends” to call on in times of need,” he said.

“As we are all aware, beneath the glossy veneer of resorts and beaches, bulas and smiles, island nations share a serious struggle with globalisation and even survival quite distinct from our larger neighbours. Corporate compliance is but one pressure on management.”

The workshop was aimed at helping leading businesses and organisations in Fiji bring corporate governance in Fiji in line with generally accepted international standards.