The Nigeria’s aviation sector has again recorded another feat as one of its domestic carriers, Medview Airlines has become listed on the Nigerian Stock Exchange (NSE) 24 years after ADC Airline was listed and subsequently delisted.
What is exciting about the development is the fact that it came at a time when domestic airline business in the country is at its lowest owing to various reasons.
At its appearance at the NSE, the airline listed 9,750,649,400 ordinary shares of 50kobo each at N1.50kobo per share with the prediction airline will record the growth of N58.5 billion in the next three years.
In his speech on the occasion, the NSE Chief Executive, Oscar Onyema while commending the airline management, declared how the economic challenges facing the country had hindered the aviation sector which he attributed to the untimely exit or outright collapse of some airline operators.
While advising other airlines and companies in the aviation sector to take a cue from Medview, Onyema declared: “Today’s listing by an introduction of 9.75Billion (9,750,649,400) ordinary shares of Med-View Airlines on the main board of the Nigerian Stock Exchange at a listing price of N1.50 per share is a culmination of several months of hard work by all parties to the transaction, including the Securities and Exchange Commission and The Exchange. This listing has added N14.65billion (N14, 625,974,100) to the market capitalization of The Exchange, further deepening the Nigerian capital market.”
The airline Chief Executive, Muneer Bankole stated: “Being listed also gives better clout and rating when obtaining loans from financial institutions, boost the airline’s international image and profile as well as improve corporate governance and accountability”.
The move by the airline management to go public was not a surprise to many within the sector owing to the level of achievement it has recorded despite the harsh economic situation confronting airlines in the country.
Again, it a known fact in the sector that the success so far recorded by the airline was not far from the core professionalism imbibed by those managing it which gave the airline the lee way to be able to weather the storm when others who could not stand the heat in the kitchen unceremoniously had left the stage or still bleeding to continue.
Prior to now, many key players in the sector had advised the domestic airlines to either get listed on the NSE or merge with other airlines as a way of becoming stronger to be able to withstand the myriad of challenges facing them.
Unfortunately, all the plea to the airlines to consider these reasonable options met a brick wall just because of ‘eccentric ego’ of not wanting to lose their position as the overall master of their business.
Many of the airline owners have continued to be cocooned in their own thoughts with the belief that embracing the genuine options will deny them their ownership positions even when it is obvious that they are gasping for breathe.
Little wonder that most of the domestic carriers are performing below expectations as they struggle to remain in the business forgetting that for their failure to follow the principles and guidelines of running airline business.
It is therefore on this premise that the Crucial Moment is commending the management of Med-View for its exemplary business strategy of ensuring its entrance on the NSE in view of the obvious advantages coming its way.
There is no doubt that the listing of Med-View on the NSE will further reposition it towards doing business with foreign companies which will be willing to do business with it because of the level of reliability and transparency it has further garnered by its entrance on the NSE.
With the development, more businesses will be attracted to the airline while customers’ perception of the airline value and public confidence will be increased.
The entrance of the airline on NSE will no doubt give room for an exposure to a broader membership of the financial community and wider range of investors including market makers, stock brokers and institutional investors.
Domestic airline business will surely become more robust and seamless if other airlines can learn from Med-View which has now become a pacesetter in airline business in Nigeria.