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By Dipo Olowookere

The Initial Public Offering (IPO) conducted by Skyway Aviation Handling Company (SAHCO) Plc from Monday, November 12, 2018 to Wednesday, January 9, 2019 recorded a 64.65 percent subscription, Business Post has learned.

According to details of the exercise released on Thursday revealed that of the total 406,074,000 ordinary shares of 50 kobo each offered by SAHCO at N4.65k per share, only 262,520,126 units valued at N1,220,718,585.90 were received from investors.

SAHCO had intended to raise a total of N1.89 billion from the IPO, with proceeds from the exercise earmarked for expansion of the firm.

Business Post gathered that a total of 1212 applications were received for 262,520,126 ordinary shares of 50 kobo each being issued, valued at N1,220,718,585.90.

However, a total of 1211 applications for 262,510,000 ordinary shares with a total value of N1,220,708,700.00 were found to be valid under the terms of the offer. Accordingly, they were accepted and processed.

It was revealed that 48 of the valid applications did not comply with the provision that subsequent applications above the minimum application amount of 500 ordinary shares be in multiples of 100 ordinary shares.

Accordingly, additional amounts, which were below the subsequent application threshold were not allotted and the funds paid for such unalloted shares would be returned to the applicants, the details disclosed.

Furthermore, one Application Form for 100 ordinary shares with a total value of N465 was found to be invalid under the terms of the offer and thus was rejected. Consequently, the corresponding funds will be returned to the applicant.

It was also noted that, “1211 subscribers were allotted 262,510,000 ordinary shares of 50 kobo each with a total value of N1,220,708,700.00.

“The unsubscribed shares amounting to143,586,000 ordinary shares of 50 kobo each shall revert to the vendors.”

It was further stated that the Securities and Exchange Commission (SEC) has cleared the allotment, while the “Registrars, First Registrars & Investor Services Limited, will credit the CSCS account of allottees who have provided their CSCS account details with the ordinary shares of 50 kobo each allotted to them not later than Friday, April 26, 2019.”

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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