SAT, DECEMBER 29 2018-theG&BJournal-Equity investors have something to cheer going into 2019 after a brutal 2018.
The Skyway Aviation Handling Company’s (SAHCO) N1.8 billion equity offering, which is billed to close Wednesday 9 January 2019, could arouse a raft of bold interest in IPOs in 2019 including telecoms giant MTN and Singapore owned Indorama Eleme Petrochemicals Ltd, which represents a class of companies ready to list publicly traded shares after spending years tapping private sources of cash, becoming established brands in the process.
The list could also include the Nigeria Reinsurance Corporation which has had its eyes set on the market for a while now.
The crazy swing in equities throughout 2018 has bankers reluctant to advise companies to file, again on the risk that market will be less accommodating given the 2019 election. Analysts confirm that market volatility and market sell-off in 2018 had a direct impact on the IPO market in the year because pricing IPOs under such conditions were extremely difficult.
The Nigerian Stock market rose 16 percent in the first quarter, spurred on by rising oil prices. But sell-offs began to stick-in fast and in September dragged down to as low as 0.84 percent to extend downward trends to seven consecutive trading sessions. In November the ASI fell further 0.2 percent to close at 32,143.41 points following sell pressure in banking stocks and by the first week of December fell a further 0.24 following sell-offs across major sectors.
‘’It’s a critical time to be testing demand on public markets,’’ says one analyst. It is a big bold move by SACHO which could confound also,’’ he added.
But for SACHO, the stakes could never be higher particularly given the Board’s resolve to broaden its shareholders base and facilitate Nigerians participation in the company’s growth story.
SACHO, The only ground handling company that has affiliation with maritime cargo and cargo aviation, under the IPO is offering for sale a total of 406,074,000 ordinary shares of 50kobo each at N4.65 per share, representing 30 percent equity share in the company.
The IPO is also tied to improving the liquidity and tradability of the shares of the ISAGO (IATA) and RA3 (European Union) certified ground handling company, increasing its visibility and credibility in the Nigerian market and overseas and enhancing its access to capital.
The company, with over 20 quality clients and increasing revenue, already has investments in the state-of the art aviation grounding handling apparatus, man power trainings with recently completed ultra-modern cargo import and export warehouses.
The offer application opened Monday 12 December 2018.
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