SAHCO Gets October Deadline to Meet Free Float Requirement

By Modupe Gbadeyanka

The Nigerian Stock Exchange (NSE) has given Skyway Aviation Handling Company (SAHCO) Plc till October 2019 to meet up with the free float listing rules.

Business Post reports that companies listed on the stock exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities.

The free float requirement for companies on the ASEM Board is a minimum of 15 percent of issued and fully paid up shares while that of the Main Board is a minimum of 20 percent of the issued and fully paid up shares.

Companies listed on the Premium Board are also required to have a free float of a minimum of 20 percent of issued and fully paid up shares or the value of its free float is equal to or above N40 billion on the date the exchange receives the Issuer’s application to list.

SAHCO, which joined the local bourse this year and is listed on the Main Board, has a free float of 19.39 percent, meaning it has a deficiency of 0.61 percent.

Business Post reliably gathered that for a while, authorities of the NSE and the company have been in talks on how the listing requirement can be met.

Not too long ago, the stock market regulator agree to give SAHCO till October 2019 to ensure at least 20 percent of the company’s issued share capital are available to the investing public.

On Tuesday, April 23, 2019, a total of 1,353,580,000 ordinary shares of SAHCO Plc priced at N4.65k per unit were listed on the main board of the NSE by way of an Initial Public Offering (IPO).

SAHCO is a full-scale aviation ground handling service provider with a focus on aircraft/ramp handling, cargo handling, passenger handling, premium lounge, aviation security and baggage reconciliation. The firm enjoys the patronage of a clientele that spans international and local commercial airlines, as well as other air cargo companies.

SAHCO was incorporated as a private limited liability company under the name Skyway Aviation Handling Company Limited on 22nd April 2009.

The company is a member of the Sifax Group. In 2009, the Sifax Group, through SAHCO, acquired the Federal Government’s 100 percent equity stake in Skypower, an aviation ground handling services entity, under the privatization programme of the Nigerian Government.