Med-View Airlines lists on Nigeria Stock Exchange, eyes N58b growth
Med-View Airlines yesterday listed on the Nigerian Stock Exchange (NSE) offering N9.75 billion ordinary shares of 50 kobo each at N1.50 per share, indicating a start-off market capitalisation of N14.63 billion.
The listing was to boost its current yearly revenue, currently put at N26billion with growth projection to reach N58.5billion by 2020.
By the listing and sale of shares to members of the public, the airline would have access to the needed capital inflow to run more efficiently and improve confidence of investors.
Besides, shareholders would also have a say in the running of the airline, while the risk of ownership is spread among the shareholders as well.
The Minister of State for Aviation, Hadi Sirika, was present at the Nigeria Stock Exchange to observe the listing, which he described as a step in the right direction for the growth of domestic airlines in Nigeria. Among others who commended the bold step were the Chief Executive Officer (CEO) of the NSE, Oscar Onyema, Chairman of the Airline Operators of Nigeria, Captain Nogie Meggison and President of National Association of Nigerian Travel Agencies (NANTA), Bernard Bankole.
Managing Director/ Chief Executive Officer of Med-View Airlines, Muneer Bankole, shortly after a session on the NSE trading floor, said it was a great day for the airline, “giving something to Nigerians to collectively own since the demise of the Nigerian Airways”.
Bankole, who was part of the Nigerian Airways for about three decades, said the brain behind Med-View was the drive to have a national airline and coming to the public is “one of the litmus tests to show that we are here for you.”
According to him, “With efforts of some of my colleagues at the defunct Nigerian Airways, we started this airline with nothing. But from N3.6billion revenue in the first year, we have grown to N26billion in 2016. First Bank supported us and we are grateful.
“Today, we can boast of four aircraft own by Med-View and two leased to us, total making six. With our noble effort and your (public) support, we believe that that the sky is the starting point,” he said.
NSE CEO, Onyema, said notwithstanding the challenges of the economy and effects on the aviation business, the industry in Africa and Nigeria remains very viable and goldmine for investors.
He observed that the aviation in Nigeria currently generates 255,000 jobs with $1billion contribution to the Gross Domestic Product (GDP) yearly.
He added that the crippling problems of policy and larger difficult economy has forced Med-View to the stock exchange, with track record of over three million passengers and 46million tonnes of cargo airlifted since the airline ventured into domestic operations in 2012.
The CEO, however, said that the airline had shown real standard and sound corporate governance for listing in the market.
While he congratulated the management and board of Med-View, Onyema urged other airlines to come on board and make most of the benefits the market has to offer.
Med-View Airline has recorded a steady growth of 20 per cent in turnover. This gave it the confidence to go international, and now operates flights to London, Jeddah, Accra, Monrovia and Freetown. The airline has secured all necessary approvals to link all the countries in the Economic Community of West African States (ECOWAS) in the next few months.
Also on the front burner is expansion on the international routes to United States via Baltimore, United Arab Emirates via Dubai with connections to Europe and the Far East through a code share airline partner.