Nigeria’s state oil company is considering selling between 5% and 10% of its shares in a first public offering. Group chief executive Bashir Bayo Ojulari discussed the possible size of the sale on 3 November at an energy conference in Abu Dhabi. His comments gave potential investors an indication of how much of the company might be offered.
The domestic stock market would be the main venue, Ojulari told Reuters. He also raised the possibility of a secondary listing in London or New York. Those are possible locations for an additional listing. The interview does not announce a decision to list in either overseas city or a date when trading would begin in Nigeria.
An initial public offering would allow members of the public to buy part of NNPC Limited. To understand the scale, imagine the entire company divided into 100 equal parts. The range Ojulari discussed would represent five to ten of those parts. It does not describe the price of a share or the return a buyer could expect.
The executive said the preparations were likely to last at least through 2027. He identified better governance and greater transparency as the main aims of the proposed listing, with raising money a secondary goal. That timetable refers to work to get the company ready. It gives investors no specific day on which the offer will open.
Ojulari also discussed the possibility of listing subsidiaries later. A share in a subsidiary and a share in its parent represent ownership of different companies. The percentage he discussed for a first NNPC offering cannot simply be applied to every business in the group.
What it means for you. If you are following the proposal, look for an actual offer document that identifies the company, the price, the application period and how to apply. The percentage range in Tuesday’s interview answers none of those purchasing questions on its own. No subscription window or payment instructions were announced in the interview.