Aliko Dangote, Chairman of the Dangote Group, hinted that Dangote Refinery aims to take over fuel distribution in Africa. He spoke about a new business that he would love Africans to be a part of, saying that he wants Africa to be a part of what he calls “making a historic move.”
He made these claims known while speaking in an Africa report.
“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 we would like to allow Nigerians, Africans, and other investors to join us in making this historic move,” he said.
Rotimi Fakayejo, an economy and capital market analyst, said that the total list for the refinery cost is over N8 trillion on the Nigerian Stock Exchange.
According to him, the refinery will attract foreign portfolio investment to Nigeria as it has been listed.
“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.
He went on to say that the refinery will elevate the equity market in terms of both inequality 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.
“It will affect foreign portfolio investment, attract foreign exchange, and 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 continued, “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. Definitely, the market cap of that company will be much higher 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”.
He mentioned that the refinery’s listing would give Nigerians the opportunity to share in the wealth it would bring.
“It is a major development for the Nigerian capital market. It will be a momentous event for the capital market because of the 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.
He explained that the Dangote refinery has a vision and a promising 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 high. 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.
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