- SAHCO Eyes Expansion as N1.89bn IPO Closes
Skyway Aviation Handling Company Plc has revealed plans to expand as its N1.89bn Initial Public Offering draws to a close.
The firm, in a statement on Monday, said it planned to consolidate its leading position in the Nigerian aviation handling industry by expanding into other West African countries as part of efforts to ensure long-term value for shareholders.
The statement read in part, “SAHCO plans to ride on the back of the success of its ongoing IPO to further push its vision of becoming the leading provider of aviation handling services in the West African region.
“Through the IPO, we are offering 406.074 million ordinary shares of 50 kobo each at N4.65 per share. Application list for the N1.89bn IPO closes on Wednesday, January 09, 2019.”
According to the statement, 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.
The Chairman, SAHCO, Taiwo Afolabi, said the firm’s future strategy was 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.
He said, “In order to achieve this objective, SAHCO seeks to pursue growth and opportunities consistent with its business operations by focusing on operational excellence and efficiency, enhanced service delivery, strategic partnerships and alliances that will enhance its capability both in the domestic market and globally as well as strategic investments, among others.”
Afolabi noted that since its privatisation, the firm had grown consistently over the years, adding that its turnover grew from N2.31bn in 2009 to N4.86bn in 2017 while total assets rose from N3.33bn to N14.54bn.
According to him, following the implementation of a number of turnaround initiatives post-privatisation, the firm built strong competence as one of the leading aviation ground handling companies in Nigeria, growing its market share from 21 per cent in 2009 to more than 40 per cent in 2017.
