Stock exchange remains the best place to raise capital—Onyema, CEO of NSE
The chief executive of Nigerian Stock Exchange (NSE), Mr. Oscar Onyema has once again stressed that the Exchange remains the best bet for raising capital for serious businesses in Nigeria.
Addressing officials of Medview Airline who were at the Exchange for the listing of the company, he said “We are particularly pleased that Med-View 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. I commend Med-View for this bold and strategic step.
He noted that 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.
According to him, “Domestically, the aviation industry supports over 255K jobs and contributes more than US$1 billion (N304.25 billion) to GDP”
“Of this sum, 49% is a direct output of the aviation sector via airports, airlines and ground services; while 51% is contributed indirectly by the aviation supply chain. Notably, an additional US$464 million is derived from tourism.
“Over the past decade, the Nigerian aviation industry has experienced significant challenges leading to the exit or decline of many operators. This has also impacted significantly on passenger traffic for inbound and outbound destinations having peaked at over 15 million in 2014, gradually declining to 11.3m in 2015 and dropping to 6m in 2016 as a result of the economic downturn.
Onyema added that upon negative growth in passenger volumes, the decline in number of operators continues to put positive pressure on the successful industry players – such as Med-View Airline – to seek sustainable funding options to support growth and meet passenger demand.
Onyema made it clear that “With a total market capitalization of N16.18tr ($53Bn) across all of our asset classes; far-reaching transformational programmes aimed at improving market access, strengthening and providing products that are aligned to investors’ requirements, while ensuring a fair and orderly market; the NSE is positioned as a premiere listing destination for African corporates, governments and international issuers”.
Business Hilights recalls that Med-View Airline Plc 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.
He hailed Medview for its resilience in driving corporate governance, excellence, professionalism and efficient services to its passengers, as well as providing increased returns to its shareholders.
He therefore called on other participants in the aviation industry value chain to look seriously at leveraging the opportunities that abound in the Nigerian capital market.
Medview listed by Introduction of 9.75Billion (9,750,649,400) ordinary shares of Med-View Airline on the Main Board of the NSE at a Listing Price of N1.50 Per Share showing an culmination of several months of hard work by all parties to the transaction including the Securities and Exchange Commission and The Exchange.
This listing therefore added N14.65b (N14, 625,974,100) to the market capitalization of The Exchange, further deepening the Nigerian Capital Market.
Besides, analysts say the deal will further boost 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.
