SAHCOL Aims to Reward Shareholders With Double-Digit Growth

By Modupe Gbadeyanka

Few months ago, Skyway Aviation Handling Company (SAHCOL) Plc became the first company under the Bureau of Public Enterprises (BPE) privatization programme to successfully finalize an Initial Public Offering (IPO).

During the exercise, the company sold part of its shares to the Nigerian public and it eventually listed 1.35 billion shares worth N6.29 billion on the Nigerian Stock Exchange (NSE) at N4.65 per unit.

Last week, the management of SAHCOL were at the NSE to inform investors why they listed the firm on the local bourse. They also used the occasion to unveil their plans for the company in the next five year.

Speaking at company’s Fact behind Listing on the NSE, Managing Director/CEO of SAHCOL, Mr Basil Agboarumi, said the firm plans to achieve a double digit growth in the next five years by expanding its operations beyond the shores of Nigeria to other West African markets.

According to Mr Agboarumi, this will enable the company add value to shareholders in a consistent manner through payment of attractive dividends.

He explained the listing on the stock exchange was to give Nigerians opportunity to benefit from the company’s success story as well as make it more feasible.

“SAHCOL’s future strategy seeks to create long term shareholder value through profitable operation and expansion of its business beyond Nigeria into other West African markets with a vision to become the leading provider of passenger, ramp and cargo handling services in the West African region,” he said.

“We have a plan in place for strategic alliance of partnership, expansion of our offerings and increasing our visibility in Nigeria and beyond.

“We will begin to look at cost management and we are projecting 15 percent growth within the next five years,” he added.

Mr Agboarumi noted that SAHCOL was strategically positioned to take advantage of growth opportunities in the Nigerian aviation industry, leveraging its established brand and reputation, strategic alliances, technical capacity, state of the art technology and equipment, and fully-trained and experienced staff.

Also speaking at the event, CEO of NSE, Mr Oscar Onyema, who was represented by Ms Tinuade Awe, Executive Director in charge of Regulation at NSE, described the listing as a promising development in the country, being that SAHCOL is the first company under the BPE privatization programme to successfully finalize an IPO and list its shares on a securities exchange.

The NSE chief said the listing would 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.

Recall that 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 percent privatized by the Bureau of Public Enterprises (BPE) and transferred to the Sifax Group in 2009.