SAHCOL offers N406m in first IPO after four years
Hopes of a return of the era of Initial Public Offerings (IPO) were rekindled last week, after four years of zero record, with the offer for sale of SAHCO Plc’s 406,074,000 ordinary shares of 50 kobo each at N4.65 per share.
The company, which is one of the foremost aviation handling companies in Nigeria, would now go public four years behind the stipulated time by the Bureau of Public Enterprises (BPE), when the former subsidiary of Nigeria Airways, Skypower Aviation Handling Company Limited, was sold to Sifax in 2009.
The Executive Director Sales and Marketing, SAHCO Plc, Olaniyi Adigun, while presenting the “Facts Behind the Offer” in Lagos, said the company has continued to grow its assets and emerged as one of the leaders in the ground handling business in Nigeria.
He said the company, when listed, would increase its visibility, as well as broaden its access to capital to fund future growth plans and initiatives.
According to him, since privatisation, SAHCOL had 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 at present with over 100 per cent growth in revenue and total assets.
“SAHCO’s future strategy is to create long term shareholder value through the profitable operation and expansion of its business beyond Nigeria and into other West African markets with a vision to become the leading provider of passenger, ramp and cargo handling services in the West Africa sub-region.
“Leading ground handling operator is strategically positioned to take advantage of growth opportunities in the Nigerian aviation industry, leveraging on its established brand and reputation, strategic alliances, technical capacity, state of the art technology and equipment and fully trained and experienced staff,” he said.
He said huge investment was committed in the company since its acquisition by the Sifax Group, noting that to make it competitive and to enable it wrest some market share from its rival, heavy handling equipment were acquired by the company, which built the most modern and most sophisticated storage and handling facility in the country.
The Chief Executive Officer of the NSE, Oscar Onyema, applauded the company for choosing the platform to further inform the market of its ongoing transaction and other strategic investment.
“We wish to appreciate the stock brokers and all parties to the offer, the issuing house for putting together this transaction. Given that the market is driven by timely and accurate information, your interaction with the market is very welcome and we encourage you to continue with this trend.
“Sahcol Plc offer is the first initial offer to be facilitated in the capital market in the last four years. This initiative is in line with the federal government privatization in Nigeria, which is being spearheaded by the Bureau of Public Enterprises (BPE).
“We thank the government for using the capital market to drive economic activities. We believe that the success of this IPO will provide enabling roadmap for future privatization program in NSE,” he said.