NSE Admits SACHO’s 1.354bn Shares On Main Board
Lagos – Desirous Nigerian investing public got another choice of investment on Tuesday when the Nigerian Stock Exchange (NSE) admitted a total of 1.354 billion ordinary shares of Skyway Aviation Handling Company Plc (SAHCO) at N4.65 per share on its main board. With the listing, the company added N6.294 billion to the market capitalisation of the stock market.
Addressing the investment community at the fact behind the listing on the floor of the Nigerian Stock Exchange, the Managing Director/ Chief Executive Officer, Agboarumi Basil, said SAHCOL the firm is one of the success stories of privatisation in Nigeria.
“We felt that that we need to give Nigerians opportunity to benefit from the success story and also to make the company more feasible. SAHCOL is the only ground handling firm that has an airline background,” he said.
“SAHCOL’s future strategy seeks to create long term shareholder value through the profitable operation and expansion of its business beyond Nigeria and into other West African markets with vision to become the leading provider of passenger ramp and cargo handling services in the West Africa sub-region,” Basil noted further.
Ms. Tinuade Awe, Executive Director, Regulation, speaking on behalf of the National Council, Management and Staff of The Nigerian Stock Exchange, said following the Federal Government’s decision to identify key state-owned enterprises from which to extract value and open to private sector expertise, SAHCOL was 100 per cent privatised by the Bureau of Public Enterprises (BPE) and transferred to the Sifax Group in 2009.
Awe added that 10 years on, the company has become an important success story of the Federal Government’s privatization drive.
“Today’s listing is a promising development in the country, being that SAHCOL is the first company under the BPE privatisation programme to successfully finalise an Initial Public Offering and list its shares on a securities exchange.
It serves as an example to other similarly situated companies. And, we encourage more of these companies to explore the different opportunities in the capital markets for raising long term capital. We believe that increased participation of indigenous companies in the capital markets will increase investors’ confidence (both local and international) and entrench good corporate governance, transparency and sustainability.
“We are particularly pleased that SAHCOL has taken this strategic step to join the Main Board of The Exchange and in so doing, the prestigious club of quoted companies in Nigeria. This step reflects the Company’s belief that our platform remains a veritable avenue for raising capital and enabling sustainable national growth. I commend SAHCOL for this bold and strategic step.
“Your listing on the NSE today will not only showcase the company as an established player in the Aviation sector, but will enable the firm to actualize its strategic vision of becoming the leading provider of passenger, ramp and cargo handling services in West African.
“The Company has gone through a rigorous process to meet the listing standards of the NSE. With this listing, the Company is demonstrating its commitment to living a culture of strong corporate governance, excellent corporate citizenship and efficient services to its clients.
“Today’s listing by Initial Public Offering of 1,353,580,000 ordinary shares of SAHCOL at a Listing Price of N4.65 per share is a result of several months of hard work by all parties to the transaction including the Bureau of Public Enterprises, Securities and Exchange Commission and The Exchange. This listing has added N6.29 billion to the market capitalisation of The Exchange, further deepening the Nigerian Capital Market. It will also increase the visibility of SAHCO Plc whilst solidifying its brand as a major player in the Aviation sector,” she said.
This listing shows the confidence SAHCOL has in our platform, which has a total market capitalisation of N21.5 trillion across various asset classes. In order to remain competitive, we have implemented far-reaching transformational programmes that have improved market access and provided products that are aligned to investors’ requirements. We have also cemented several transparency initiatives (such as BrokerTrax, X-Compliance, X-Whistle, Compliance Status Indicator Symbols, X-Issuer etc.) which have significantly improved confidence to our market.
By: Bamidele Ogunwusi , Lagos