The Petroleum Industry Act establishes the Nigerian National Petroleum Company Limited, which would replace The Nigerian National Petroleum Corporation established in the 70s. This means the corporation will be incorporated under the Companies and Allied Matters Act (CAMA), as a limited liability company. The implication is that the incorporated company will function as a traditional corporate business, that has the aim of profit-making, and the right to issue shares.
Mele Kyari who currently heads the corporation in an interview made it known, that the company will issue its IPO in three years from now (2024).
Initial Public Offering (IPO) is a process where a company issues its shares for the first time to the public for investing. Thus, the corporation is saying that investors can begin to own a stake in the company from 2024.
NNPC going public implies that an average Nigerian could own a stake in the company by investing in the company’s shares.
NNPC’s shares are excepted to be listed on the Nigerian Exchange Group and also boost the Nigerian capital market. According to the act that established The Nigerian National Petroleum Company Limited, 20% of the company’s profit is to be reinvested to the company as retained earnings while 80% of the profit is to be distributed to shareholders as dividends. This suggests that dividend-seeking investors could find the company’s shares attractive. It is also good to know that dividend is a function of the profitability of a company, NNPC announced a profit for the 2020 financial year, it first-ever since it was established in the 70s, and this could be one of the major concerns of prospective investors.
NNPC intends to purchase a 20% stake in the ongoing Dangote’s refinery, which means a percentage of its income will be generated from the operations of the refinery, and automatically gives shareholders of NNPC’s a certain percentage stake in the refinery.
https://www.investingport.com/nnpc-to-go-public-in-2024/
Mele Kyari who currently heads the corporation in an interview made it known, that the company will issue its IPO in three years from now (2024).
Initial Public Offering (IPO) is a process where a company issues its shares for the first time to the public for investing. Thus, the corporation is saying that investors can begin to own a stake in the company from 2024.
NNPC going public implies that an average Nigerian could own a stake in the company by investing in the company’s shares.
NNPC’s shares are excepted to be listed on the Nigerian Exchange Group and also boost the Nigerian capital market. According to the act that established The Nigerian National Petroleum Company Limited, 20% of the company’s profit is to be reinvested to the company as retained earnings while 80% of the profit is to be distributed to shareholders as dividends. This suggests that dividend-seeking investors could find the company’s shares attractive. It is also good to know that dividend is a function of the profitability of a company, NNPC announced a profit for the 2020 financial year, it first-ever since it was established in the 70s, and this could be one of the major concerns of prospective investors.
NNPC intends to purchase a 20% stake in the ongoing Dangote’s refinery, which means a percentage of its income will be generated from the operations of the refinery, and automatically gives shareholders of NNPC’s a certain percentage stake in the refinery.
https://www.investingport.com/nnpc-to-go-public-in-2024/