Skyway Aviation Handling Company Plc (SAHCOL), yesterday, listed its shares on the main board of the Nigerian Stock Exchange (NSE).
SAHCOL‘s public listing makes the cargo handling firm the first company under the Bureau of Public Enterprises (BPE) privatisation programme to successfully finalise its listing on the Nigerian bourse.
Today’s listing is a promising development in the country, being that SAHCOL is the first company under the BPE privatization programme to successfully finalize an Initial Public Offering and list its shares on a securities exchange. #NSENewListingpic.twitter.com/2YoL1UkKCf
— The Nigerian Stock Exchange (@nsenigeria) April 23, 2019
This was disclosed by the Chief Executive Officer, NSE, Oscar Onyema, who stated that the listing of SAHCOL on the stock market showed the confidence the company has in the Exchange.
Onyema, who was represented by the Head, Listings Regulation, NSE, Tinuade Awe, said SAHCOL would be adding N6.29 billion to the market capitalisation of the equities market.
SAHCOL’s listing: The company listed 1.35 billion shares, which is 100 percent of its issued and paid-up ordinary shares. The shares traded at a listing price of N4.65. It was, however, under-subscribed by 35 per cent.
Why SAHCOL decided to list it shares
When undergoing the privatisation process, SAHCOL and the BPE reached a number of agreements. One of the agreements is to list the company’s shares, SAHCOL‘s Chief Executive Officer, Basil Agboarumi, said.
“THIS 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.
“THIS LISTING WILL GIVE NIGERIANS THE OPPORTUNITY TO PARTICIPATE IN THE COMPANY’S GROWTH STORY. THE LISTING WILL ALSO IMPROVE THE LIQUIDITY AND TRADABILITY OF THE COMPANY’S SHARES, INCREASE THE COMPANY’S VISIBILITY AND CREDIBILITY IN THE NIGERIAN MARKET AND BEYOND.”
Other reason: The listing would also broaden the company’s access to capital in order to fund its future growth initiatives.
How SAHCOL intends to lure investors
Attracting investors is not a day job, and Agboarumi is well aware of this. He said some of SAHCOL‘s unique selling points include: the company’s sound business model and scalable franchise, strong brand name and reputation, best-in-class facilities, and experienced management team with deep expertise and competence.
According to Agboarumi, SAHCOL plans to expand service offerings, enter into strategic alliances/partnerships, increase customer lifetime value, develop the skills of employees, and manage cost in order to grow.
He is also confident that the company will meet the required standards and expectations of the market stakeholders as well as the NSE.