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3 weeks ago
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- NNPC has retracted its announcement that it plans to merchantability shares to Nigerians aft signaling a profit
- Nigerians person been eagerly anticipating the archetypal nationalist offering since the signing of the Petroleum Industry Act
- This is not the archetypal clip the authorities lipid steadfast has announced plans to database its shares connected the Nigerian banal market
Legit.ng writer Dave Ibemere has implicit a decennary of concern journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.
The Nigerian National Petroleum Company Limited (NNPC Ltd.) said connected Thursday, March 27, it is successful the last stages of preparing for an archetypal nationalist offering (IPO), reviving plans to merchantability shares to investors.
However, conscionable hours aft making the announcement, NNPC Ltd deleted its societal media posts astir the planned IPO, raising questions astir the timing and certainty of the listing.
Source: Getty Images
In the deleted statement signed by spokesperson Olufemi Soneye, Olugbenga Oluwaniyi, NNPC’s Chief Finance and Investor Relations Officer, was revealed to person made the plans known during a consultative gathering with partners astatine the NNPC Towers successful Abuja,
It was besides revealed that arsenic portion of regulatory requirements, the institution is conducting an “IPO Beauty Parade” to measure imaginable partners successful 3 cardinal areas: Investor Relations, IPO Readiness Advisory, and Investment Banking.
Oluwaniyi said:
“The institution with the champion connection successful presumption of task concern would beryllium selected for each of the 3 categories.”The institution has not provided a timeline for the offering.
Source: Twitter
NNPC plans to database shares
NNPC Ltd. has antecedently announced plans for an IPO, including successful 2018 and 2023, but those efforts did not materialise owed to marketplace conditions and interior restructuring challenges.
The company, which became a commercialized entity successful 2022 nether the Petroleum Industry Act (PIA), is required to database its shares successful enactment with the Companies and Allied Matters Act (CAMA) 1990.
Vanguard reports that analysts accidental NNPC Ltd. indispensable fortify its fiscal presumption to pull investors by improving transparency, reducing debt, and maintaining affirmative currency flow.
The institution has yet to people its audited accounts for 2024 and has a past of fiscal opacity aft decades of substance subsidies and authorities interventions.
Despite the move, NNPC Ltd.'s determination to delete tweets astir the planned IPO from its authoritative societal media accounts raises questions astir the timing and certainty of the listing.
How IPO work?
According to BusinessDay, an archetypal nationalist offering (IPO) is typically a lengthy and analyzable process for immoderate company.
However, for NNPC Ltd, which published its archetypal audited accounts successful 2023 aft implicit 4 decades of cognition and has faced ongoing fiscal transparency issues, going nationalist poses adjacent greater challenges, sparking concerns astir governance, capitalist confidence, and regulatory oversight.
New pump prices expected arsenic substance prices summation by N20
Earlier, Legit.ng reported that an vigor adept has warned that substance prices successful Nigeria could summation to N930 per litre over the naira-for-crude sales.
The impasse betwixt the national authorities and the Dangote Refinery had already led to an summation successful ex-depot prices for fuel.
The concern could worsen pursuing Dangote's determination to suspend the merchantability of petrol successful naira.
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Source: Legit.ng
