NAHCO proposes 1-for-7 bonus shares, N6.25 dividend for shareholders

The board of directors of Nigerian Aviation Handling Company Plc (NAHCO) is proposing a 1-for-7 bonus issue for its shareholders ahead of its Annual General Meeting scheduled for May 15, 2026, in Lagos.

This was disclosed in a notice issued by the company to shareholders ahead of the AGM, where investors are expected to approve both a cash dividend of N6.25 per share and a bonus share issue.

If approved, shareholders will receive one new share for every seven shares already held, further rewarding investors after the company’s strong financial performance in recent periods.

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What they are saying

NAHCO said it plans to create 278,437,500 new ordinary shares of 50 kobo each to facilitate the proposed bonus issue for shareholders.

The company explained that the additional shares would rank equally with existing shares and would be distributed to shareholders whose names appeared in the register as of May 1, 2026.

• _“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 of N0.50k.” _
• _“That the Directors having recommended, the sum of N139,218,750.00 be transferred from the Company’s retained earnings or other reserve accounts to the share capital account.” _
• _“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 of 50 kobo each held by them.” _
• _“The shares distributed shall rank pari-passu with the existing shares in all respects and will be treated for all purposes as capital and not as income.” _

If approved at the AGM, the bonus shares will be issued to shareholders eligible as of the qualification date announced by the company.

What this means

NAHCO currently has a share capital of about N974.5 million, and the creation of additional shares valued at N139.2 million will increase its total share capital to about N1.113 billion. The increase will come from the creation of 278,437,500 new ordinary shares that will rank pari-passu with the company’s existing shares.

• The N139.2 million required for the bonus issue will be transferred from the company’s retained earnings into its share capital account.
• Companies in Nigeria are permitted to pay dividends from retained earnings, which consist of current-year profits and accumulated undistributed profits from previous years.
• Bonus shares represent a form of dividend payment issued in shares instead of cash, allowing shareholders to benefit either by holding the additional shares or selling them on the floor of the NGX.
• Under the proposed ratio, a shareholder holding 700 shares will receive an additional 100 shares if the resolution is approved.

Only shareholders whose names appear in the company’s register as of May 1, 2026, will qualify for the bonus issue.

**What you should know **

NAHCO is among the few major NGX-listed companies proposing bonus shares during the current AGM season. The proposed combination of cash and stock rewards is subject to shareholder approval at the company’s AGM scheduled for May 15, 2026.

• The company has already proposed a cash dividend of N6.25 per share in addition to the planned bonus shares.
• NAHCO reported earnings per share of N7.6 in its 2025 full-year results, compared to N5.78 recorded in the previous year.
• In its first-quarter 2026 results, the company reported earnings per share of N2.33, compared to N2.22 recorded in the corresponding period of 2025.
• The company’s share price closed at N203.9 per share and has gained about 55% in the last three months after opening 2025 at around N94.5 per share.

The proposed cash dividend and bonus issue position NAHCO’s AGM as one of the more shareholder-focused corporate events on the NGX this month.

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