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SAHCO Closes N1.89bn IPO

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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 today.

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.

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.

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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