Skyway Aviation Handling Company LTD (SAHCO) on Monday announced plans to raise N1.9 billion in an Initial Public Offering (IPO).
Speaking in Lagos, the Chairman, SAHCOL, Dr Taiwo Afolabi, explained that the IPO was being undertaken based on terms of the executed Share Sale and Purchase Agreement (SSPA) that was sealed over the privatisation of the former Skypower.
He explained that under the terms of the SSPA, the shareholders of the company are required to divest 49 per cent equity stake in SAHCOL 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 SAHCOL 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.”
He disclosed that SAHCOL got the nod of the Bureau of Public Enterprises (BPE) for the IPO, adding that the Bureau approved a phased divestment in view of current market conditions.
Urging Nigerians to subscribe to the Offer, Dr Afolabi noted that following a number of turnaround initiatives post-privatisation, SAHCOL 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: “SAHCOL’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.”
Also speaking at the event, Director General of the BPE, Mr. Alex Okoh, stated that the planned IPO was significant especially given that there has not been any major issue in the market in the last four years.
He explained that the BPE supported the planned IPO as it believes that public offerings provide the best channel for allowing the public own national assets. He commended the management of SAHCOL for growing the company to a level where it is now leading player in the aviation sector.
He said: “If you look at the amount of investment that has gone into SAHCO post privatisation, you would agree with me that it was a good decision to have privatised SAHCO 100 per cent.”