Med-View Airline lists N14.5bn worth of share on NSE main board

By Kayode Ogunwale

 

THE management of the Nigerian Stock Exchange (NSE) has admitted 9.75 billion ordinary shares of Med-View Airline Plc valued at N14.65 billion on its main board.

The listing of N1.50 kobo per share of Med-View Airline on the daily official list of the Nigerian bourse is a culmination of several months of hardwork by all parties to the transaction including the Securities and Exchange Commission and the NSE.

While speaking at the listing, Chief Executive Officer of NSE, Oscar Onyema stated that the listing added N14.65 billion to the market capitalization of the exchange, further deepening the Nigerian Capital Market.

The NSE boss believe that admitted of Med-View Airline Plc into the bourse will increase the visibility of the company and differentiate it as a professionally run airline with high corporate governance standards, having met the NSE’s listing criteria.

While speaking on the efficacy of NSE to the economy, Onyema said NSE platform remains one of the best avenues for raising capital and enabling sustainable growth for national development.

“Despite the challenging operating environment in the aviation industry globally, the air transport industry continues to contribute about $10 billion to Gross Domestic Product (GDP) of African countries, and its projected that close to six million jobs would be supported by Africa’s air transport sector over the next 20 years. Domestically, the aviation industry supports over 255K jobs and contributes more than US$1 billion (N304.25 billion) to GDP1. Of this sum, 49 per cent is a direct output of the aviation sector via airports, airlines and ground services; while 51 per cent is contributed indirectly by the aviation supply chain. Notably, an additional US$464 million is derived from tourism”, Onyema said.

He however encouraged other participants in the aviation industry value chain to look seriously at leveraging the opportunities that abound in the Nigerian capital market.

Onyema also called on the Minister of Aviation to work towards creating an enabling environment for the revival of the aviation industry in Nigeria.

He encouraged Med-View Airline to always be transparent in all its dealings.

In his address, Minister of State, Aviation, Sen. Hadi Sirika said there is huge potential and opportunity within the sector of Aviation especially looking at tourism, connect also business, places and people.

According to him, it is very important for the sector to experience growth and development and also making our economy much more robust.

We can achieve a lot through tourism as a nation, Kenya for example is living on tourism with 60 million people, one third of Nigeria population ingenious companies, and a lot of counties boosting their revenue through tourism, the minister said.

He stated that government is doing everything that is within its power to ensure that aviation industry develop and increased capacity to give the needed service in such a manner that is standardized.

In his own, the Chief Executive Officer of Med-View Airline, Mr. Muneer Bankole believe that the listing would enhance the corporate value and brand image of the company.

He said Med-View Airline listed to get better access to long term capital from a wide range of local and international investors.

Bankole believed that the listing will boost the international image and profile of Med-View Airline and it will lead to improved corporate governance and accountability.

He stated that, Med-View Airline is one of Nigeria’s foremost airlines airlifting more than 3 million passengers and 46 million tons of cargo (annually) to 14 local, regional and international destinations, including London, Accra, Jeddah, Abuja, and Lagos amongst others.

Speaking on the financial position of the company, Executive Director of Med-View Airline Plc, Mr. Adebayo Olaniyan stated that the company revenue grew from N2.6 billion to N26 billion in the last five financial years.

He however projected that Med-View Airline Plc revenue will grow up to N58.5 billion by year 2020.

He also projected total assets of N36.825 billion and shareholders’ funds of N27.200 billion by the year 2020.