NAHCO Seeks Shareholders’ Approval To Raise Share Capital To N1.11bn

Nigerian Aviation Handling Company Plc (NAHCO) has concluded plans to seek shareholders’ approval to increase its share capital from N974.53m to N1.11bn as part of measures aimed at strengthening the company’s capital base and rewarding investors through a bonus share issuance.

The proposal will be presented to shareholders during the company’s 45th Annual General Meeting (AGM), where approval will also be sought for the creation of 278.44 million additional ordinary shares and the distribution of bonus shares to existing shareholders.

According to the notice of AGM, the proposed increase in share capital will raise the company’s issued share capital from N974,531,250 divided into 1.949 billion ordinary shares of 50 kobo each to N1.11bn divided into 2.227 billion ordinary shares of 50 kobo each.

The increase will be achieved through the creation of an additional 278,437,500 ordinary shares of 50 kobo each, which will rank pari-passu with the company’s existing ordinary shares.

As part of the restructuring plan, the board is recommending the transfer of N139.22m from the company’s retained earnings or reserve accounts into the share capital account to facilitate the bonus share issuance.

Under the proposed arrangement, shareholders whose names appear in the company’s Register of Members as of the close of business on May 1, 2026, will receive one new ordinary share for every seven existing shares held.

The company stated that the bonus shares would be fully paid and would rank equally with existing shares in all respects.

NAHCO also noted that the shares would be treated as capital rather than income for shareholders.

In addition, shareholders will be asked to authorise the company to round down fractional entitlements resulting from the bonus share allotment to the nearest whole share or zero, depending on the board’s discretion.

The aviation handling company is also seeking approval to amend Clause 6 of its Memorandum of Association to reflect the new share capital structure following the proposed increase.

If approved, the amended clause will state that the company’s share capital stands at N1.11bn divided into 2.227 billion ordinary shares of 50 kobo each, with powers reserved for future capital increases and share classification adjustments where necessary.

Furthermore, shareholders will consider a resolution empowering the directors to execute all agreements, regulatory filings, and related documentation required to implement the capital restructuring and bonus share programme without returning to shareholders for additional approvals.

The proposed capital increase and bonus share issuance are expected to enhance shareholder value, improve market liquidity of the company’s shares, and reinforce NAHCO’s long-term growth strategy within Nigeria’s aviation and ground handling sector.