Shareholders of Nigerian Aviation Handling Company Plc (NAHCO) could soon receive both additional shares and cash rewards as the company moves to strengthen investor confidence following another impressive financial year.
Ahead of its Annual General Meeting scheduled for May 15, 2026, in Lagos, the company’s board has proposed a 1-for-7 bonus share issue alongside a cash dividend payout of N6.25 per share.
If approved by shareholders at the AGM, investors will receive one new ordinary share for every seven shares currently held. The move comes as NAHCO continues to post stronger earnings growth and significant share price appreciation on the Nigerian Exchange (NGX).
According to the notice sent to shareholders, the aviation handling company plans to create 278,437,500 additional ordinary shares valued at 50 kobo each to execute the bonus issue.
The company stated:
“That the share capital of the Company be and is hereby increased from N974,531,250.00 divided into 1,949,062,500 ordinary shares of N0.50k each to N1,113,750,000.00 divided into 2,227,500,000 ordinary shares of N0.50k each by the creation of additional 278,437,500 ordinary shares of N0.50k each ranking pari-passu with the existing ordinary shares.”
NAHCO further explained that the new shares would carry equal rights with existing shares and would be allocated to shareholders whose names appeared in the company’s register by the close of business on May 1, 2026.
The company added:
“The amount thus transferred shall represent the value of 278,437,500 N0.50k each as fully paid up and to be allotted, distributed and credited as fully paid up to and amongst the members whose names are registered in the Company’s Register of Members at the close of business on Friday 1st May 2026 in the proportion of one (1) new share of 50 kobo each for every seven (7) existing shares.”
NAHCO also clarified that the bonus shares would rank pari-passu with existing shares “in all respects” and would be regarded as capital rather than income.
Share Capital to Rise Above N1.1 Billion
The proposed bonus issue will increase the company’s share capital from approximately N974.5 million to about N1.113 billion.
To finance the allotment, NAHCO plans to transfer N139.2 million from its retained earnings into its share capital account. Retained earnings typically consist of accumulated profits that have not been distributed to shareholders in previous years.
Bonus issues are commonly used by companies to reward investors without directly paying additional cash. Existing shareholders receive more shares in proportion to their holdings, giving them flexibility to either retain the shares for future value appreciation or sell them on the stock market.
Under the proposed structure, an investor holding 700 shares will receive an additional 100 shares if shareholders approve the resolution at the AGM.
Strong Financial Performance Fuels Shareholder Rewards
The proposed rewards package reflects NAHCO’s strong financial momentum over the past year.
The company reported earnings per share of N7.60 in its 2025 full-year results, an increase from N5.78 recorded in the previous year. Its first-quarter 2026 performance also showed continued growth, with earnings per share rising to N2.33 from N2.22 in the corresponding period of 2025.
Investor sentiment around the stock has also remained bullish. NAHCO shares recently closed at N203.90, representing a gain of roughly 55 percent over the last three months after the stock opened 2025 at around N94.50 per share.
The combination of a cash dividend and bonus shares has positioned NAHCO among the few major companies listed on the Nigerian Exchange currently offering dual shareholder rewards during the ongoing AGM season.
Market analysts say the proposed payout underscores the company’s confidence in its earnings outlook and its commitment to delivering value to shareholders amid improving corporate performance.