SAHCO’s N1.89bn IPO closes amid last-minute rush

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Application list for the N1.89 billion initial public offering (IPO) of Skyway Aviation Handling Company (SAHCO) Plc to close at the end of business on Tuesday.

Stockbroking firms and other receiving agents however have some two weeks window to submit their final collations to the issuing houses, providing discerning investors with additional opportunity to use the filing period to submit additional applications.

SAHCO is offering 406.074 million ordinary shares of 50 kobo each through an IPO at N4.65 per share. Application list for the N1.89 billion IPO, which opened on November 12, 2018, closes today, Wednesday, January 09, 2019.

Minimum subscription to the IPO is 500 shares and thereafter in multiple of 100 shares. This implies that any Nigerian with N2, 325 will be able to be part of owners of the company, thus realising one of the objectives of privatisation of creating and distributing wealth to Nigerians.

SAHCO was privatised by the Federal Government in 2009. Sifax Group acquired the entire share capital of the company but the Share Sale Purchase Agreement (SSPA) mandated the majority core investor to partially divest the shares of the company to the general Nigerian investing public.

A total of 10 per cent of the shares being offered for sale will be reserved for staff of SAHCO under an Employee Stock Ownership Plan to be set up and administered by a Trustee.

The shares of SAHCO are expected to be listed on the Nigerian Stock Exchange (NSE) this quarter, providing investors with dual opportunities of dividend and capital gain.

Many analysts have projected that the share price of SAHCO has significant upside potential and could deliver double-digit gain in the months ahead. Analysts at leading investment firms including Vetiva Capital Management Limited and Cordros Capital Limited said the post-IPO performance would create values for shareholders.

Analysts said SAHCO has strong potential to sustain growth in the years ahead given its exposure to long-term expansion of air traffic, improvement in macro environment, relatively under-geared balance sheet and its competitiveness enhanced by IATA Safety Audit for Ground Operations (ISAGO) registration.

The board of SAHCO has also outlined a growth plan aimed at consolidating the company’s leading position in the Nigerian aviation handling industry with expansion into other West African countries as part of efforts to ensure long-term values for shareholders.

The board of the company has also assured that the company would provide good returns to shareholders citing its impressive historic growth and potential upside from ongoing growth initiatives.

SAHCO plans to ride on the back of the success of its ongoing initial public offering (IPO) to further push its vision of becoming the leading provider of aviation handling services in the West African region.

Chairman, Skyway Aviation Handling Company (SAHCO) Plc, Barrister Taiwo Afolabi, said the company’s future strategy is to create long term shareholder value through the profitable operation and expansion of its business into other West African markets with a vision to become the leading provider of passenger, ramp and cargo handling services in the West African region.

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