The National President, Constance Shareholders Association of Nigeria, CSAN, Shehu Mallam Mikail, in this interview with Financial Vanguard spoke on Med- View Airline Plc joining the cream of companies listed on Nigerian Stock Exchange, NSE; prospects of its proposed capital raising; financial performance , among other things
By Peter Egwuatu
WHAT is your view about
Med-View Airline Plc that was listed on the NSE recently?
The listing by introduction of 9.75 billion ordinary shares of Med-View Airline at N1.50 per share on the NSE Main Board is a welcome development. My fellow shareholders and I, commend Med-View Airline for taking the bold step to list on the Exchange. We are particularly pleased that Med-View Airline took this strategic step to join the prestigious club of listed companies in Nigeria. It further reaffirms our belief that in spite of several policy and economic challenges facing the nation, the stock market remains one of the best avenues for companies to operate.
Shehu Mallam Mikail
How has the company’s stock been performing on the NSE since it was listed?
The company’s stock is not doing badly on the stock market. You know that the depressed economic situation may have impacted on the company. Generally, stock market performance has been at a bearish level at the beginning of the year, until recently when we started seeing remarkable improvement. On the average, the share price of the company has gained 10kobo, from N1.50 it was listed to about N1.60 per share at the end of trading last week. The company’s Earnings Per Share, EPS stood at N0.13, while its Price Earnings ratio stood at N12.35. So, by and large, the company‘s stock should be investors’ bride considering the short period it has operated in the market.
How do you see the company’s proposed plan to raise capital from the capital market?
It is a good development for the company and the capital market. One of the advantages of listing on the NSE is that company can raise money at any time to boost its operations. The capital market is an avenue for raising capital and enabling sustainable growth for national development. So, in the case of Med-View Airline, it has received shareholders approval to go ahead to raise money. The company has good management and has been complying with the post- listing requirements of the NSE. Even though, it has not operated in the capital market for one year, it has already held its maiden post-listing Annual General Meeting, AGM and paid dividend to shareholders.
If the company comes out to raise money, do you think the offer would be fully subscribed?
I believe the offer would be fully subscribed because the existing shareholders of the company have confidence in the Board of Directors and management. Personally, I will partake in the offer and I believe other shareholders will do as well because they had given them approval to do so. Beside, the market is doing well and investors’ confidence is gradually returning to the market as the economy has started recovering.
What area do you think that the company can improve upon regarding its services?
I think the company should improve on its Information Communication Technology, ICT. In the area of ticketing and other activities, I would implore them to leverage on ICT to boost services as well as reduce costs.