The Initial Public Offering (IPO) of Skyway Aviation Handling Company Limited (SAHCOL) priced at N4.65 per share opened on Monday November 12, 2018.
The net proceeds of the Offer, estimated at N1.83billion will be disbursed to the three Vendors in consideration for the shares divested under the Offer, the offer prospectus seen by BusinessDay shows.
The Vendor in the offer are Sifax Shipping Company Limited, Taiwo Afolabi, and Folashade Afolabi. By way of Initial Public Offering, investors are offered 406.074million ordinary shares of 50kobo each in Skyway Aviation Handling Company Plc (SAHCOL). The Offer closes on December 19, 2018.
Out of 1.353billion ordinary shares of 50kobo each in the issued share capital of Skyway Aviation Handling Company, Sifax Shipping Company Limited owns 550million units (40.6percent); Taiwo Afolabi owns 503.58million or (37.2percent) while Folashade Afolabi owns 300million or 22.2percent.
The Lead Issuing House in the IPO is Vetiva Capital Management Limited while Joint Issuing House is Cordros Capital Limited.
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The Initial Public Offer is being undertaken to enable the Vendors divest 406,074,000 Ordinary Shares representing 30percent of the entire issued and fully paid up ordinary shares of SAHCOL in partial compliance with the terms of the SSPA (as approved by BPE).
Ten (10) percent of the shares being offered for sale will be reserved for staff of SAHCOL (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.
Only Nigerian citizens are entitled to apply for and be allotted shares under this Offer in accordance with the provisions of the SSPA and Public Enterprises (Privatisation and Commercialisation) Act Cap. P38 LFN 2004.
An application has been made to The NSE for the Admission to its Daily Official List, of 1,353,580,000 Ordinary Shares of 50 Kobo each representing the entire issued and fully paid up ordinary shares of SAHCOL, according to the abridged offer prospectus.
The shares being offered for sale will be allotted on the basis of equality between the three hundred and sixty (360) Federal constituencies in the Federation and the Federal Capital Territory. However, shares may be allotted from Federal constituencies with under-subscription to those with over-subscription.
In the financial period to March 31, 2018, Skyway Aviation Handling Company reported revenue of N1.36billion; profit before tax of N23million and Loss After Tax of N25million.
“The need to go public was part of the share purchase agreement that we had with Bureau of Public Enterprises, which is the government.
“SAHCOL was handed over to the SIFAX group 100percent. Part of the share purchase agreement states that after a period of time, some shares of the company will be diverted to the public and that is exactly what we are respecting today. We are aligning ourselves with the documents that were signed. SAHCOL becomes one of the first case of that they want to put out to the public of privatization”, Basil Agboarumi, the new Managing Director of SAHCOL had noted.
Skyway Aviation Handling Company Limited, with its new private sector management composition and orientation kicked off the development of business models geared towards ushering in efficient service delivery. SAHCOL has invested in personnel development, state-of-the-art fleet replacement and massive infrastructural development, to ensure efficient and speedy service delivery.
Currently, SAHCOL is significantly present in all the commercially operated airports in Nigeria, where services are offered in the following areas: Ramp handling, Passenger handling and Cargo handling. These are in addition to other services such as Aviation Security, Baggage Reconciliation, and Premium Lounge.
The company’s coverage cuts across all the regions in Nigeria which include Abuja, Minna, Kaduna, Jos, Yola, Katsina, Kano, Maiduguri, Sokoto, Gombe, Port Harcourt, Calabar, Enugu, Owerri, Uyo, Lagos, Ilorin, Benin, Asaba, and Akure.
Iheanyi Nwachukwu
