Skyway Aviation Handling Company Limited, on Monday, November 12, 2018, opened its Initial Public Offering (IPO) to sell 406.074m shares at N4.65 per unit to new shareholders, as part of the divestment plan by existing shareholders in line with terms of the share purchase agreement approved by the Federal Government’s Bureau of Public Enterprises (BPE).
According to details of the offer for sale, which closes Wednesday, December 19, 2018, the largest shareholder- Sifax Shipping Company Ltd, will have his stake reduced post-offer to 385m units, or 28.4%, from the existing 550m.
Also, the shareholding of Barr (Dr) Afolabi Taiwo, the company’s chairman, will reduce from the current 503.58m, or 37.2%, to 352.506m, or 26%; while the holding of Mrs. Folashade Afolabi, another director will expectedly drop to 300m shares, or 22.2%, to 210m, or 15.5%.
This will leave Nigerian citizens and organizations with the remaining 406.074m, or 30%.
The company and its stakeholders to the offer, while providing a five-year financial history of Sahcol, did not give a projection, or outlook of where the company plans to be in another three years as expected as a basis for attracting investors.
Sahcol’s financial history up till March 31, 2018, Sahcol grew its revenue from N4.082bn in 2013 to N4.856bn in 2017, after attaining a height of N4.899bn in 2016; while operating cost have grown from N1.953bn to N2.656bn; leaving gross profit flat at N2.199bn in 2017, from N2.129bn.
Net profit at N909.729m in 2013 remains its peak, dropping first to N635.801bn the following year; before slipping into a N69.656m loss; before returning to N897.014m profit; and then slumped to N217.728m in 2017.
In the first quarter performance, Sahcol reported N1.362bn revenue, out of which operating cost stood at N726.857m, resulting in gross profit of N635.859m, resulting in loss after tax of N25.381m, after a tax expense of N48.063m; as against a tax credit of N91.826m in the 2017 full year.
Total assets for the period improved to N23.267bn as of March 31, 2018, up from N11.65bn in the 2017 full-year. The significant growth was helped by the N15.936bn value of its property, plant and equipment, from N6.34bn in the 2017 full-year; followed by intangible asset of N4.057bn, same as previous full-year; while total current assets stood at N2.963bn, slightly better than the N2.891bn reported in the 2017 financial year.
Total liabilities dropped to N8.293bn, from N9.039bn in 2017, with total non-current liabilities at N3.248bn from N3.305bn; even as trade and other payables rose slightly from N2.499bn to N2.515bn. This left total shareholders’ funds at N14.293bn, from just N5.502bn.