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Lastest News Nigeria, Politics, Business, Sport, Interview
Tunji Wusu –
The deadline for the start of the Nigerian National Petroleum Company Limited’s initial public offering has passed without being met.
The national oil corporation missed the deadline for its initial public offering, according to its quarterly report, which was released on Monday.
On July 19, 2022, the corporation went into business, thanks to the Petroleum Industry Act. During a transfer ceremony, NNPC’s group CEO, Mele Kyari, had earlier stated that the business would be prepared to begin an IPO by mid-year in 2023.
A corporation sells shares in a public offering (IPO) to institutional investors. According to the quarterly report, the NNPC was anticipated to be prepared for an IPO by the end of the second quarter. However, the third quarter has passed and no IPO has been announced.
According to the article, “NNPC Ltd. is making a deliberate effort to properly clean up its books toward recapitalization.”
“The PIA provides that NNPC Ltd will be in a position to consider any initial public offering (IPO) in three years’ time.”
The business stated that it is aware that “you need to do things differently when you want to get ready for an IPO.”
You must make sure your books are accurate. You must restructure your portfolio and recapitalize it, the NNPC stated in the paper.
“NNPC Ltd. is currently well-positioned for an IPO declaration with the announcement of profit-after-tax for the financial years 2020 and 2021 (and with 2022 coming up soon).
“Fingers crossed, NNPC will be IPO-ready by the second quarter of 2023.”
The chance to own shares in NNPC Ltd will be available to all interested parties once an IPO is conducted, the article continued.
The NNPC would set aside 20% of its income as retained earnings in order to expand its operations, according to the quarterly report. The business would also charge for services rendered at the request of the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
According to the article, NNPC will receive a management charge for production sharing contracts equal to 30% of profit from oil and gas. Additionally, the business could raise money through loans, bonds, and other financial instruments.
