I was a student and had some free funds. I read about the promises of Transcorp Plc initial public offer (IPO), from the president of the nation, and the director general of the securities and exchange commission; I joined the IPO party . Because I felt that those duo would never allow the company to crash, I went in and bought the shares of Transcorp. They had sold Transcorp as Nigeria’s equivalent of China’s state enterprises all combined in one.
That investment has underperformed across all domains. Honestly, I do not want to remember that mistake.
Now, the news is that the Nigerian National Petroleum Corporation (NNPC) will sell shares to the public in 2024. That was according to the GMD of NNPC, Mele Kyari, in a conservation on Bloomberg: “The Nigerian National Petroleum Corporation (NNPC) will sell its shares for the first time to the public in three years, a path to raising the fund needed to sustain it as a going concern after managing to break a loss-making spell that has run it aground for roughly four decades and a half. Mele Kyari, the corporation’s head, told Bloomberg in a video chat on Tuesday the Initial Public Offering (IPO) will help Nigeria keep pace with the global energy transition in a bid to unlock its benefits.”
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“IPO already means this company is going to be profitable,” Mr Kyari said.
“It has a long projectory, it has short term view of how things can be done better to align with best practices in the industry, trying to see how we can latch on the existing framework for energy transition that is ongoing all the world.”
Looking at what happened in Transcorp, will you buy NNPC shares?
Meanwhile, this announcement validates my call in 2017 when I wrote thus: “NNPC Plc – Nigeria Should Take NNPC Public To Boost Transparency”. I listed some benefits for NNPC Plc.
NNPC Plc – Nigeria Should Take NNPC Public To Boost Transparency
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Although, due to expectation there would be rain of cash- certainly, many would invest. However, I would follow the other path.
Looking more closely, you made a prediction in 2017 and it came up in 2021, so, it safe to say that the best investment is Knowledge.
So, I would rather buy more books that deepen my knowledge than put it into a firm that would rise and tank later!
I wish all the best.
I remember the Transcorp theme song in its IPO days, ‘We are 100% Nigerian…’, and all the niceties. The temptation was huge, but I think my ancestors intervened, so I ended up not joining the party.
With the level of financial knowledge some of us now have, it’s not Kyari or NNPC board that needs to preach to us to buy the shares, we will look at the numbers, both present and future, then see if there’s a meat attached to the bone.
We are watching…
Once they start selling share please notify me
lol
I’m not quite knowledgeable about buying shares and the stock market. Please what good materials would you recommend for me to read it up.
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Thank you sir.
Great move! However, it’s too late to pitch for oil.
Numerous indicators and predictions points us to a sad reality of the decline of oil-based deals. (Though it still looks colourful now.)
The two main products from crude oil (fuel and plastics) already have competitive alternatives. And this is due to the sustainability movements.
NNPC can go public, but in the few years, it will spiral downward.