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NSE eyes more oil firms after Caverton listing

By on May 22, 2014

Following the listing of Caverton Offshore Support Group on the Nigerian Stock Exchange on Tuesday, the Exchange says it expects more companies with operations in the oil and gas sector to list.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, said this in Lagos during the ‘Facts behind the listing’ presentation by the management of Caverton at the Exchange.

Ahead of the presentation, the Oba of Lagos, Rilwan Akiolu, was on the floor of the Exchange, to witness the Caverton team, led by its Chairman, Mr. Aderemi Makanjuola, ring the closing bell.

The listing of Caverton’s entire 3.35 billion shares on the NSE, by way of introduction, brought the number of new listings on the Exchange this year to two, matching the total new listings for 2013. Seplat Petroleum Development Company had listed earlier in the year.

Onyema, who expressed his delight at the development, said Caverton, an indigenous marine and aviation logistics service provider, had taken a step towards becoming and African champion.

According to him, the move lifted the market capitalisation of listed equities by N31.8bn.

Onyema said, “We are proud that Caverton has taken a strategic step to join the league of quoted companies on the Exchange and I once again commend them for this bold step.

“Caverton has listed over 3.35 billion ordinary shares of 50 kobo each at N9.50 per share, adding a total of N31.8bn to the market capitalisation of the listed equities on the Exchange and has over the last five years maintained a track record of profitability and paid dividend every year since 2009…

“After the listing of Seplat last month, we are happy to be listing a major oil services company look forward to more listings around the oil and gas field.”

The NSE CEO also commended Caverton for taking ‘giant strides’ in strengthening its governance structure to prepare for its new status as a listed company.

The Chief Executive Officer, Caverton, Mr. Olabode Makanjuola, said,

“The recurring question is ‘why are we here?’ Well, we are here because we rose from humble beginning and we have grown over the last 12 to 14 years and with tremendous growth come huge demands for capital.

“Over the last few years, staff strength has grown to over 700 and we see the stock exchange as an avenue to diversify our access to finance.

“At the same time, we are a strong company and we maintain a tradition of good governance.”

Makanjuola, who said the company’s objective was to become the top oil and aviation servicing company in Africa, assured stakeholders at the event that the company would live up to their expectation.

He expressed confidence that having signed contracts with major global companies, some lasting uptil 2020, Caverton would continue to record increase in turnover and pay good dividend.

Responding to questions, the Caverton CEO explained that the company had liquidated its debt to the Asset Management Company of Nigeria in March 2012, stressing that its tract record puts it in a good position for impressive growth.

Makanjuola also hinted that the company might consider an initial public offering soon.

“We have a large contracts coming out this year and they would require large amounts of capital,” he said, adding that the contracts would determine how much it needed to raise.

Makanjuola, who said the company’s primary risk was operational, told stakeholders that the risk was mitigated by regular audits.

Incorporated in 2008, Caverton Offshore Support Group is the holding company of Caverton Helicopters and Caverton Marine Limited.

 

 

[Punch]