The Nigerian National Petroleum Company Limited (NNPCL) has announced that it is nearing the completion of preparations for its highly anticipated listing on the capital market, a move mandated by the Petroleum Industry Act 2021. Hobnob News reports on the company’s strategic steps towards its Initial Public Offering (IPO).
Olufemi Soneye, the NNPCL Chief Corporate Communications Officer, revealed in a statement released on Thursday in Abuja that the company is actively engaging with potential partners in an exercise dubbed the “NNPCL IPO Beauty Parade.” This consultative process, held at the NNPCL headquarters, aims to identify and secure crucial partnerships in accordance with capital market regulations.
According to Olugbenga Oluwaniyi, NNPCL’s Chief Finance and Investor Relations Officer, the “IPO Beauty Parade” is designed to assess prospective partners and determine their potential contributions to the company’s IPO journey.
The company is seeking partnerships in three key areas: Investor Relations, IPO Readiness Advisors, and Investment Bank Partners. NNPCL intends to select the most suitable partner for each category based on the strength of their proposals.
An IPO, or Initial Public Offering, involves the sale of a company’s shares to institutional investors, marking a significant step towards public ownership. The Petroleum Industry Act (PIA) 2021 explicitly mandates NNPCL to list its shares on the capital market, aligning with the provisions of the Companies and Allied Matters Act 1990.
This move signifies a major shift in the Nigerian oil and gas industry, potentially opening up NNPCL to greater transparency and market accountability. Hobnob News will continue to track the company’s progress towards its IPO.
