Skyway Aviation Handling Company Plc (SAHCO) yesterday joined the league of quoted companies as the Nigerian Stock Exchange (NSE) admitted its 406.074million ordinary shares of 50 kobo each at N4.65, raising its market capitalization, at listing, to N6.29 billion.
The company’s shares are expected to be on services/Transport related services sector with its free float up to 30 per cent, while the offer is to close on December 19, 2018.
Speaking during the company’s facts behind the offer Initial Public Offering (IPO) in Lagos, Chief Executive Officer, NSE, Oscar Onyema, commended SAHCO management for the bold step to list the company on the Exchange.
His words: “We are pleased that SAHCO Plc has chosen to use this platform to further inform the market of this ongoing transaction and other strategic and corporational developments in the company. Given that the market is driven by timely and accurate information, the reaction of the market through this forum is very welcome and we encourage the companies to continue in this trend.”
The transaction is the first IPO done at the capital market in the last four years.
This initiative is in line with the Federal Government’s privatization programme in Nigeria which is being spearheaded by the Bureau Public Enterprises (BPE).
We thank the government for heeding to our call to lead the way in using the capital market to drive economic activity”
According to him, the success of the IPO will provide an enabling roadmap for future privatization programmes on the Nigerian Stock Exchange (NSE).
Speaking further, Managing Director, SAHCO, Agboarumi Basil, said the listing is in partial compliance as approved by the BPE with the share sale and purchase agreement executed in respect of the Federal Government’s divestment of 100 per cent equity stake in the erstwhile Skypower Aviation Handling Company Limited.
Basil who was represented by Executive Director, Sales and Marketing at the aviation company, Olaniyi Adigun, explained that the IPO on the exchange will give Nigerians the opportunity to participate in the company’s growth story, improve the liquidity and tradability of the company’s shares, increase the company’s visibility in the Nigerian market as well as broaden SAHCO’s access to capital in order to fund the company’s future growth initiatives.
He said, SAHCO has the best asset base, cash flow and a confident management and we have grown our revenue by more than 100 per cent. Liquidity is not a problem at SAHCO as we believe that we can do the right things, we are not there yet but we believe that we will keep churning out innovations in our business model in the long term. So I encourage investors who want to invest, to invest in the company’s shares”
The SAHCO boss thereafter said the company’s future strategy seeks to create long term shareholder value through the profitable operation and expansion of its business beyond Nigeria and into the West African markets.