The Nigerian National Petroleum Company Limited (NNPC Ltd) is in the final stages of listing on the capital market as it prepares for an Initial Public Offering (IPO) in line with the Petroleum Industry Act (PIA) 2021.
Olugbenga Oluwaniyi, the company’s Chief Finance and Investor Relations Officer, disclosed this during a consultative meeting with partners at the NNPC Towers in Abuja on Thursday.
He revealed that NNPC Ltd has commenced an “IPO Beauty Parade”, a strategic engagement with prospective partners to ensure compliance with capital market regulations ahead of its planned listing.
“The Nigerian National Petroleum Company Limited (NNPC Ltd) is at the final stage of getting listed in the capital market, in keeping with the provisions of the Petroleum Industry Act (PIA) 2021,” the statement read in part.
An IPO, which allows institutional investors to purchase shares in a company for the first time, will officially introduce NNPC Ltd to the stock market.
Oluwaniyi explained that the development aligns with capital market regulations and aims to determine the best offers in terms of project partnership.
More insights
According to the CFIO, the purpose of the IPO Beauty Parade is to find potential partners and explore how they can support the company.
He mentioned three key areas where partnerships are needed: Investor Relations, IPO Readiness Advisers, and Investment Bank Partners.
The selection of partners will be based on the strength of their proposals and their ability to provide comprehensive support in these areas.
Under the Petroleum Industry Act (PIA) 2021, NNPC Ltd is required to transition from a state-owned entity to a fully commercial enterprise. This transformation also mandates compliance with the Company and Allied Matters Act (CAMA) 1990, ensuring transparency, efficiency, and profitability.
What this means for the oil and gas sector
- This move represents a major shift in Nigeria’s oil and gas industry. By opening up to investors, NNPC Ltd aims to enhance corporate governance, attract private sector investment, and boost operational efficiency.
- NNPC Ltd is in the final stages of preparing for its IPO, a move that will significantly impact the Nigerian economy and the global oil and gas market.
- The ongoing IPO Beauty Parade will determine the best partners to guide the company through this crucial phase, ensuring a successful public offering.