Dangote Petroleum Refinery and Petrochemicals FZE could be worth significantly more than the valuation implied by its planned Nigerian Exchange (NGX) listing, according to independent estimates from CardinalStone Research and Chapel Hill Denham.
The Securities and Exchange Commission has approved the sale of 4.1 billion shares at ₦525 each, potentially raising about ₦2.15 trillion, or $1.63 billion. The offer is scheduled to run from September 14 to October 13, with the shares expected to begin trading in November.
Investors have started selling existing shares to make room for Africa’s biggest IPO, raising an important question for Nigeria’s capital market about how much money the Dangote deal can pull out of everything else.
The signing ceremony for the Dangote Petroleum Refinery’s initial public offering marked a major step in the company’s plan to take the refinery to the capital market.
Dangote Refinery has completed the endorsement of its offer documents, clearing the way for its $1.6 billion initial public offering, which is scheduled to open next week.
The company’s Managing Director and Chief Executive Officer, Olajumoke Cecilia Ajayi, disclosed this at the AOW Energy Conference in Accra, Ghana, during a session titled, ‘The Future of the African Operator: Building the IOCs of Tomorrow’.
The IPO could become one of the largest capital market transactions in Nigeria, with the refinery offering 4.1 billion ordinary shares at ₦525 per share. If fully subscribed, the offer is expected to raise approximately ₦2.15 trillion.
Dangote Group disclosed the approval on Friday, bringing the refinery closer to what is expected to be one of Africa’s largest equity offerings. At the offer price, the shares are worth about ₦2.15 trillion if fully subscribed.
Dangote said the ongoing fiscal, monetary and regulatory reforms had contributed to improved macroeconomic stability, stronger investor confidence, increased industrial productivity and a more resilient business environment.
The latest performance reinforces the growing importance of domestic refining to Nigeria’s petroleum industry, following years in which the country relied heavily on imported refined products despite being a major crude oil producer.
An Akwa Ibom State High Court sitting in Uyo has dismissed a petition seeking the dissolution of a marriage that has lasted over 43 years, ruling that lack of love and mutual respect between spouses does not, on its own, constitute sufficient legal grounds for divorce.
