Following its recent Initial Public Offering (IPO) on the floor of the Nigerian Stock Exchange (NSE), the Executive Director, Sales and Marketing, Skyway Aviation Handling Company Plc (SAHCO), Olaniyi Adigun, has said the process will broaden the company’s access to capital to fund future growth plans and initiatives.
The NSE admitted SAHCO’s 406,074,000 ordinary shares of 50 kobo each at N4.65, with its market capitalisation at listing amounting to N6.29 billion even as its shares are expected to be on Services/Transport related sector with its free float up to 30 per cent.
Speaking to the media while presenting the company’s “Facts behind the Offer” in Lagos recently, Adigun explained that the listing was in partial compliance as approved by the Bureau Public Enterprises (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.
He noted that since its privatisation, SAHCO has built strong competence as one of the leading aviation ground handling service providers in Nigeria, having grown its market shares from 21 per cent in 2009 to over 40 per cent in 2018, with revenue and total assets standing at over 100 per cent.
“The listing of the SAHCO shares on the Exchange will give Nigerians the opportunity to participate in the company’s growth story, improve the liquidity and tradability of its shares, increase its visibility in the Nigerian market as well as broaden SAHCO’s access to capital in order to fund future growth initiatives.
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 as well as diversifying in the long term.
So I encourage investors who want to invest to invest in the company’s shares”, Adigun said.
The Executive Director 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 with a vision to become the leading provider of passenger, ramp and cargo services in the West-African sub region.
Commending the company, Chief Executive Officer, NSE, Oscar Onyema, said, “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, accurate information, the reaction of the market through this forum is very welcome and we encourage the companies to continue in this trend.
SAHCO Plc offer for sale of 406.74m ordinary shares is the first initial public offer to be facilitated in the capital market in the last 4 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 NSE.