Caverton goes live on NSE

The Nigerian Stock Exchange (NSE) on Tuesday witnessed the listing of Caverton Offshore Support Group Plc — an indigenous firm with focus on the provision of marine, aviation and logistics services, to local and international oil and gas companies in Nigeria — on the Stock Market.

The company made history as the first oil services company to be listed on the main board of the exchange, when the firm’s 3.35 billion shares was listed by way of introduction at N9.50 per share in Logistics and Support Services sub-sector, created to accommodate the listing.

With its listing by introduction, Caverton would not be raising new capital, as the listing would provide the shareholders, who bought 13.3 per cent of the company through a private placement in 2008, with the platform to trade in the company’s stock.

To meet the minimum float requirement of the NSE, Caverton would also list 6.7 per cent of the company for institutional and retail investors to take a position in the company’s stock, bringing the volume of its traded shares to 20 per cent.

Speaking at the facts behind the listing, Chief Executive Officer of Caverton, Mr. Olabode Makanjuola, explained that the listing on the stock market was to create a legacy business that can outlive its founders and maximise the opportunities created by the federal government’s local content policy.

On the company’s financials, he disclosed that the company has grown its revenue from N5.35 billion in 2009 to N18.66 billion in 2013, reporting consistent profits over the past five years, posting a profit-before-tax of N1.838 billion in 2012, and growing it by more than 70 per cent to N3.158 billion in 2013.

Incorporated in 2008, Caverton Offshore Support Group (Caverton) is the holding company of Caverton Helicopters and Caverton Marine Limited, two Nigerian companies that have grown dramatically to become industry leaders in the oil and gas, aviation and marine sub-sectors.

Caverton Helicopters, after a rigorous competitive bidding process, edged out long-established foreign operators to win a $648 million multi-year contract from Shell Petroleum Development Company (SPDC) for the supply and operation of seven helicopters, on record as the biggest contract ever awarded by the oil multinational to an indigenous company.

Carverton’s listing comes barely six weeks after Seplat Petroleum Development Company Plc successfully undertook its initial public offer.