Investors Queries 1.35 bn SAHCO Shares Listed On Exchange

Citing corporate governance lapses, some investors on Tuesday queried the listing of over N1.35 billion unit of shares of Skyway Aviation Handling Company Plc (SAHCO) on the Nigerian Stock Exchange.

The grouse of the investors is stemmed from the rules guiding transaction between company’s and its shareholders, where investors in a public offer ought to be allotted their shares as prerequisite before such a company can be admitted on the floor of the stock market.

Addressing the capital market community during the Facts Behind the Listing of SAHCO, the chairman of Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie who made the remarks, noted that as a rule, SAHCO should have allotted shares bought during the company’s public offer in October 2018 before approaching the Exchange for listing.

According to him, “myself and sizeable number of shareholders in the equities market bought into the shares of SAHCO since October last year, and as at yesterday when I spoke with my broker, the shares is yet to hit my account. I think this does not speak well for even the regulator, who ought to abreast with the rules, before allowing such company to list its shares in the market”, he added.

It will be recall that, First Registrar & Investors Service Limited is the registrar to SAHCO Plc.

The NSE yesterday listed SAHCOL’s Initial Public Offering of 1,353,580,000 ordinary shares at a Listing Price of N4.65 per share.

By this listing, SAHCOL has joined the Main Board of The Exchange and the prestigious club of quoted companies in Nigeria.

The NSE is positioned as a premiere listing destination for African corporates, governments and international issuers looking to access the capital market of the largest economy in Africa.

In his submission, the Managing Director of SAHCO, Mr Basil Agboarumi, explained that the  listing will give Nigerians the opportunity to participate in the company’s growth story, adding “The listing will also improve the liquidity and tradability of the company’s shares, increase the company’s visibility and credibility in the Nigerian market and beyond.”

He added: “This is in partial compliance (as approved by the BPE) with the share sale and purchase agreement executed in respect of the Federal Government’s divestment of 100 per cent equity stake in the erstwhile Skypower Aviation Handling Company Limited”.

Agboarumi said the key investment highlights that would attract investors were the company’s sound business model and scalable franchise; strong brand name and reputation; best-in-class facilities; and experienced management team with deep expertise and competence.

He stated that the future strategy of the company to grow was to expand service offerings, enter into strategic alliances and partnerships, increase customer lifetime value, develop the skills of employees and manage cost.


In a presentation delivered by its Executive Director, Regulation Division, Ms. Tinuade Awe noted that SAHCOL’s listing has added N6.29 billion to the market capitalization of The Exchange, further deepening the Nigerian Capital Market.

“Today’s listing by Initial Public Offering of 1,353,580,000 ordinary shares of SAHCOL at a Listing Price of N4.65 per share is a result of several months of hard work by all parties to the transaction including the Bureau of Public Enterprises, Securities and Exchange Commission and The Exchange.  This listing has added N6.29Bn to the market capitalization of The Exchange, further deepening the Nigerian Capital Market.  It will also increase the visibility of SAHCO Plc whilst solidifying its brand as a major player in the Aviation sector,” Awe said.

Show also regarded the listing as a promising development for the country being that SAHCOL stands as the first company under the BPE privatization programme to successfully finalize an IPO and list its shares.

Director Awe said, “Following the Federal Government’s decision to identify key state-owned enterprises from which to extract value and open to private sector expertise, SAHCOL was 100% privatized by the Bureau of Public Enterprises (BPE) and transferred to the Sifax Group in 2009.  Ten 10 years on, the company has become an important success story of the Federal Government’s privatization drive.”

According to her, the feat would serves as an example to other similarly situated companies as The Exchange encourages more of these companies to explore the different opportunities in the capital markets for raising long term capital.

“We believe that increased participation of indigenous companies in the capital markets will increase investors’ confidence (both local and international) and entrench good corporate governance, transparency and sustainability.

“We are particularly pleased that SAHCOL has taken this strategic step to join the Main Board of The Exchange and in so doing, the prestigious club of quoted companies in Nigeria.  This step reflects the Company’s belief that our platform remains a veritable avenue for raising capital and enabling sustainable national growth. I commend SAHCOL for this bold and strategic step.

“Your listing on the NSE today will not only showcase the company as an established player in the Aviation sector, but will enable the firm to actualize its strategic vision of becoming the leading provider of passenger, ramp and cargo handling services in West African, Awe said.

She also noted that the SAHCOL had gone through a rigorous process to meet the listing standards of the NSE thereby demonstrating its commitment to living a culture of strong corporate governance, excellent corporate citizenship and efficient services to its clients.

“This listing shows the confidence SAHCOL has in our platform, which has a total market capitalization of N21.5Tr across various asset classes.  In order to remain competitive, we have implemented far-reaching transformational programmes that have improved market access and provided products that are aligned to investors’ requirements.  We have also implemented several transparency initiatives (such as BrokerTrax, X-Compliance, X-Whistle, Compliance Status Indicator Symbols, X-Issuer etc.) which have significantly improved confidence to our market,” she added.

Photo Caption: From Left–Head, Listing Business Division, The Nigerian Stock Exchange (NSE), Mr. Olumide Bolumole; Director General, Bureau of Public Enterprise(BPE), Mr. Alex Okoh;  Non- Executive Director, SAHCO Plc, Chike Ogeah; Executive Director, Regulation, Tinuade Awe; Chairman, Sahco Plc, Dr. Taiwo Afolabi; Managing Director, SAHCO Plc, Basil Agboarumi; Executive Director, Group Compliance, Sifax Shipping Co. Ltd, Mariam Afolabi; during the Facts Behind the Listing of SAHCO Plc at the Exchange on Tuesday.

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