The Nigerian National Petroleum Company Limited (NNPC Ltd) is in the final stages of preparing for its Initial Public Offering (IPO), as required by the Petroleum Industry Act (PIA) 2021.
This was disclosed by the company’s chief finance and investor relations officer, Olugbenga Oluwaniyi, during a consultative meeting with partners at the NNPC Towers in Abuja on Thursday.
Oluwaniyi stated that NNPC Ltd is currently engaging with potential partners in an exercise known as the “NNPC Ltd IPO Beauty Parade.” This process, he explained, is a key step in meeting capital market regulations before the public listing begins.
As part of the preparations, the company is assessing prospective partners who could support the IPO process in different capacities.
According to Oluwaniyi, NNPC Ltd is looking for expertise in three key areas: investor relations, IPO readiness advisory, and investment banking.
He explained that the company will select partners with the best offers in terms of project collaboration and financial backing.
“Our goal is to ensure that the listing process aligns with best practices and attracts the right investors,” he said.
Compliance with the PIA and capital market regulations
The Petroleum Industry Act mandates NNPC Ltd to list its shares in the capital market under the provisions of the Companies and Allied Matters Act (CAMA) 1990.
An IPO allows a company to offer shares to institutional investors and, in some cases, retail investors.
This move is expected to enhance transparency and improve corporate governance at NNPC Ltd, positioning it as a fully commercial entity.
NNPC Ltd’s transition into a publicly traded company follows its transformation from a state run corporation to a limited liability company in July 2022.
