Barring any last-minute change in plan, the $20bn Dangote Oil Refinery would be listed on the Nigerian Stock Exchange by December 2024.
The Chairman of the Dangote Group, Aliko Dangote, maintained that as a new business, he would love to have Nigerians, Africans and other investors as shareholders in the refinery, stressing that he wants to allow them to join in making what he called a historic move.
The African richest man made this disclosure while speaking in a video.
“The listing, most likely, I won’t be surprised if we list (on the Nigerian Stock Exchange) by the end of this year. We will do that. You know it is new and I think we would like to allow Nigerians, Africans, and other investors to join in making this historic move,” he submitted.
An economy and capital market analyst, Rotimi Fakayejo, said the listing of the refinery would attract about N8tn market capitalisation on the Nigerian Stock Exchange.
According to him, the refinery being listed would attract foreign portfolio investment to the country, giving the economy more foreign exchange
“The listing of any company is to distribute wealth and when individuals and corporate organisations buy into a company that is perceived to do well in the present and the future, then it increases the economic wealth and the well-being of the country,” Fakayejo stated.
The expert opined that the refinery is going to add depth to the equity market in terms of quality and quantity.
“It is also going to engender foreign portfolio investment. Such listing will affect individuals in the country and the stocks listed on the Nigerian exchange.
“Making mention of how it will affect foreign portfolio investment, it is going to attract foreign exchange and that also will boost the economy. I think the coming of the Dangote refinery is going to add so much value to the various sectors, and I think it is long overdue,” he added.
Fakayejo explained, “With the Dangote refinery coming, at least it will add a minimum of about N8tn to N10tn to the market capitalisation. That implies that we are going to see the market capitalisation running to about 40 to N45tn after the listing.
“When you look at the value invested in the company, when you look at their balance sheet at the time they will come to the floor, their balance sheet will be more than N15tn. And definitely, the market cap of that company will be much more than the balance sheet. So, I’m just being conservative by saying it will add N10tn to the market capitalisation. It is going to be a win-win”.
Similarly, the Vice President of Highcap Securities Limited, David Adonri, said stakeholders were patiently awaiting the listing of the Dangote refinery on the stock market.
Adonri mentioned that the listing would give Nigerians the opportunity to share in the enormous wealth the refinery would create.
“It is a major development for the Nigerian capital market. It will be a momentous event for the capital market because of the share size of that refinery and the depth it will bring to the Nigerian equity stock market. It is a very big activity for the capital market,” Adonri remarked.
The analyst told our correspondent that he would not be able to quantify the value the listing would add at the moment until the company announces the number of shares to list and the price, saying only these would give an idea of what the market capitalisation would be.
He enunciated that the Dangote refinery has a bright prospect looking into the future.
“This is the right time for the Dangote refinery to come to the market to be listed. The company is on course. It is in production and its sales are going on. The demand for its product is much higher than what it can produce. So, there is a huge supply gap the company is planning to fill, that therefore means that the prospect of the company in the future is very bright.
Crude importation
Meanwhile, the Dangote Group chairman also disclosed that the refinery resorted to importing crude oil from the United States because Nigeria’s oil production figures keep fluctuating.
Dangote said the refinery could not wait for the Nigerian crude because the production goes up and down.
Olaitan Ibrahim