Moves by Skyway Aviation Handling Company (SAHCO) to get enlistment on the Nigerian Stock Exchange (NSE) received a boost on Monday as the company officially made an Initial Public Offering (IPO) for the sale of 406,074,000 ordinary shares of 50k each at N4.65 per share.
The signing ceremony of the enlistment, which took place in Lagos, was witnessed by the Director-General of the Bureau of Public Enterprises (BPE), Mr Alex Okoh, SAHCO’s shareholders and other stakeholders.
While the shares are currently owned by Sifax Group and other shareholders, the offer is by way of an offer for sale and not an offer for subscription as the proceeds of the sale would be going to the vendor, the owners of the company and not to SAHCO.
Speaking with journalists at the event, Director-General of Bureau of Public Enterprises (BPE), Alex Okoh described the move as an important transaction for the BPE as there has not been a major IPO for the past few years.
He stated that Skypower Aviation Handling Company Limited (SACHOL) was previously owned by the federal government but was privatised in 2009, saying that part of the understanding guiding the share sale agreement was that the group would offer a certain percentage of the shares to the public.
“We believe that the most veritable channel to democratise the process of the sale of public asset is to offer an initial public offering, as this gives the generality of the Nigerians to buy into previously state owned assets according to their capacity,” Okoh said.
He stated that the company performed tremendously after privatisation, saying that the performance of the company showed that it was a smart decision for the government to have privatised the company.
He called on the public to take advantage of the offer and subscribe to the shares.
Also, the chairman of the company, Dr. Taiwo Afolabi, said that the Sifax Group, through SAHCO, acquired the federal government of Nigeria’s 100 per cent equity stake in the erstwhile Skypower Aviation Handling Company Limited, under the privatisation programme of the government.
He explained that under the terms of the SSPA, the shareholders of the company are required to divest 49 per cent equity stake in SAHCO to the investing Nigerian public, while 10 per cent of the shares to be divested would be sold to the staff of the company.
He said: “The Offer is being undertaken to enable the current shareholders divest 406,074,000 Ordinary Shares of 50 Kobo each representing 30% of the entire issued and fully paid up Ordinary Shares of SAHCO in partial compliance with the terms of the SSPA with plans to divest the balance of 19% equity stake at a future date.
“Furthermore, 10% of the Ordinary Shares being offered for sale will be reserved for staff of SAHCO (in accordance with section 4.2 of the SSPA and section 5 (3) of the Public Enterprises (Privatisation and Commercialisation) Act No. 28 of 1999) under an Employee Stock Ownership Plan to be set up and administered by a Trustee.”
Urging Nigerians to subscribe to the Offer, Dr Afolabi noted that following a number of turnaround initiatives post-privatisation, SAHCO has built strong competence as one of the leading aviation ground handling service providers in Nigeria, growing its market share from 21 per cent in 2009 to over 40 per cent today with over 100 per cent growth in revenue and total assets.
According to him: “SAHCO’s impact in the Nigerian aviation ground handling sector is evidenced by its array of awards and recognitions received from 2009 till date, in recognition of the Company’s strides and innovation in building a brand in line with global standards, some of which include Most efficient ground handling company of the year, 2018, by Association of Foreign Airlines & Representatives in Nigeria, African Best Passenger Handling services provider for the year 2016 – Institute of brand management of Nigeria, Most Turnaround Aviation Cargo Handling Concessionaire by Transport Development Excellence Awards (2015) – Trans Quest, World Customs Organization Award of Merit as Outstanding Terminal Operator (2015) by World Customs Organization and many other prestigious awards.”
Vertiva Capital Management Limited, the lead issuing house, assured the investing public that the business plan of SAHCO is fully funded adding that since the company was privatised that the net asset has grown from N3 billion to N15 billion as a result of massive investment in the infrastructure of the company by the Sifax Group.
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