Med-View Airline, one of Nigeria’s foremost airlines has been listed by introduction of 9.75 billion (9,750,649,400) ordinary shares at N1.50 Per Share on its Main Board the Nigerian Stock Exchange (NSE) with the aim of raising working capital and further grow shareholders value.
The company is one of Nigeria’s foremost airlines, airlifting more than 3m passengers and 46m tons of cargo (annually) to 14 local, regional and international destinations, including London, Accra, Jeddah, Abuja, and Lagos amongst others has said it grew its revenue base by 612.4 percent from N3.6 billion to N26 billion in the past five years (2012-2016).
The airline’s Executive Director Finance and Accounts Mr. Adedayo Olaniyan explained during the listing on Tuesday that the company wanted to enhance the corporate value and brand image; better access to long term capital from a wide range of local and international; better clout and rating when obtaining loans from financial institutions; to boost the international image and profile of Medview; and to improve the corporate governance and accountability of the airline with the help of its professional parties to the listing named as Trust Yield Securities Limited as its stock broker and financial adviser with Kedari as the issuing house and also a financial adviser, while Africa Prudential Registrars represented the company as its registrars.
Meanwhile, an analysis on the company’s books showed that the projected growth pace for the next four years of N31.432 billion in 2017 to N58.491 billion by 2020 stands at 86 percent.
Considering the exposure and benefits, listing on the NSE proffers, the revenue and profit growth pace will decelerate by 526 and 652 percentage points respectively in the next four years, going by the facts and numbers presented.
Olaniyan told WorldStage Newsonline that the drastic decline in the value of the naira is solely responsible for the projection.
“At the beginning of 2016, the official rate to the dollar stood at N199.5, in the course of the year, sharp increases were recorded in the price of dollar, and being a dollar dominating business, that led to a significant erosion of our revenue base and equally our bottom line,” he said.
He however noted that the management were keenly working together to come up with plans to mitigate greater risks.
Managing Director /Chief Executive Officer of Medview Airlines Plc, Alhaji Muneer Bankole said the company was also taking advantage of the futures OTC market to engage cheap Forex, but urged the government to further create an enabling environment for ease of business while noting the huge foreign exchange expenses that goes in to the maintenance of the company’s fleet of aircraft towards ensuring a safe air travel experience.
In his welcome remarks at the event, the CEO of the NSE, Mr. Oscar N. Onyema, OON, commended Med-View Airline for taking the bold step to list on the Exchange.
“We are particularly pleased that Med-View Airline has taken this strategic step to join the prestigious club of quoted companies in Nigeria. It further reaffirms our belief that in spite of several policy and economic challenges facing the nation, our platform remains one of the best avenues for raising capital and enabling sustainable growth for national development,” he said.
“This listing has added N14.65b (N14, 625,974,100) to the market capitalization of The Exchange, further deepening the Nigerian capital market. It will also increase the visibility of Med-View Airline Plc and differentiate it as a professionally run airline with high corporate governance standards, having met The NSE’s listing criteria. With this listing, the Company is showing its commitment to a culture of strong corporate governance, excellence, professionalism and efficient services to its passengers, as well as providing increased returns to its shareholders.”