SAHCO’s IPO Records 65 Percent Subscription

The initial public offering (IPO) of Skyway Aviation Handling Company (SAHCO) Plc was undersubscribed by 35.35 per cent as the company was only able to raise N1.22 billion out of IPO value of N1.89 billion.

Official final allotment report for the IPO showed that a total of 1,212 applications were received for 262.52 million ordinary shares of 50 kobo each at N4.65 per share, totaling N1.22 billion. SAHCO had floated an IPO of 406.074 million ordinary shares of 50 kobo each at N4.65 per share.

The IPO was an offer for sale, implying that the net proceeds of the IPO would go to the existing majority core investor in SAHCO, which was divesting partially to allow retail minority ownerships.

Ten per cent of the shares offered for sale were earmarked for staff of SAHCO under an Employee Stock Ownership Plan to be set up and administered by a Trustee. The IPO, which opened on November 5, 2018 and was scheduled to close on December 19, 2018, was extended for 12 working days to January 09, 2019 as concerns over valuation and slowdown in the equities market appeared to weaken demand for the shares of the ground handling company. SAHCO was privatised by the Federal Government in 2009.

Photo Caption: SAHCO LOGO

Post Author: Friday Ekeoba