1 week ago
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The determination of the president of Dangote Group, Aliko Dangote, to merchantability 5 per cent to 10 per cent of its involvement connected the Nigerian Exchange (NGX) Limited wrong the adjacent twelvemonth has generated important involvement among Nigerian investors.
The refinery, presently producing 650,000 barrels per day, targets enlargement to 1.4 cardinal barrels per day, positioning itself arsenic a planetary vigor person and perchance boosting Nigeria’s economical growth.
Dangote, who disclosed this successful an interrogation with S&P Global, said the determination volition reflector the attack adopted for Dangote Cement and Dangote Sugar Refinery.
He said, “We bash not privation to support much than 65 per cent to 70 per cent. The shares would beryllium offered gradually, depending connected capitalist appetite and marketplace depth.”
Capital marketplace stakeholders and investors person described the projected merchantability of a 10 per cent involvement successful the Dangote Petroleum Refinery arsenic a pivotal improvement that is apt to heighten capitalist confidence, summation transparency, and fortify Nigeria’s superior market.
The managing manager of APT Securities and Funds Limited, Kasimu Kurfi remarked that this connection signals the company’s volition to database connected the Exchange, which is simply a affirmative measurement forward.
He stated that “while it is encouraging to spot progress, we indispensable attack the concern with cautious consideration. Originally, a 20 per cent involvement was offered to the national government, which Dangote aboriginal purchased backmost 5 per cent.
“Now, with a connection for a 10 per cent stock connected the Exchange, it is indispensable to guarantee that the marketplace is adequately prepared to sorb specified an investment.”
He noted that “given the comparatively tiny size of our exchange, valued astatine little than $60 billion, the refinery alone, without considering marketplace valuation, is estimated astatine implicit $20 billion. This imaginable listing could correspond a important portion, up to 50 per cent of our market. Therefore, the important question arises: tin our marketplace grip this?”
To code this challenge, Kurfi said, “it is captious to rise consciousness and sensitise investors to the opportunities of this development. Effective connection volition let the marketplace to afloat admit the standard of specified an investment.”
He besides said that if the refinery opts for a dual listing, arsenic antecedently suggested, it could beryllium listed connected some the Nigerian Exchange and the London Stock Exchange.
“While the section marketplace mightiness look limitations, the planetary marketplace could connection further capacity.
“While the determination towards this listing is promising, we indispensable beryllium proactive successful fostering knowing and enthusiasm successful the marketplace to guarantee palmy uptake of the projected 10 per cent. With clip and effort successful marketplace education, we tin pave the mode for this important opportunity,” helium explained.
The director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf emphasised that this is simply a affirmative step, not lone for the Nigerian Exchange but besides for the wide system of Nigeria.
According to Yusuf, listing much companies connected the speech would supply Nigerians with the accidental to go portion owners of cardinal assets similar refineries, thereby broadening the stakeholder and ownership base.
“This determination is not lone beneficial for the Nigerian system but besides for individuals who privation to enactment successful the ownership of important enterprises, specified arsenic Dangote Refinery.
“By expanding ownership, we tin foster a consciousness of belonging among Nigerians and marque concern opportunities much inclusive. This attack could importantly heighten enactment for large projects similar the Dangote refinery.”
The managing manager of Globalview Capital Limited, Mr. Aruna Kebira, stated that the imaginable interaction of this improvement connected the system and the marketplace is apt to beryllium significant.
“While we bash not yet person a circumstantial stock price, it is important to recognize that the marketplace capitalisation volition beryllium influenced by the stock terms multiplied by the fig of shares available. This volition lend positively to the wide capitalisation of the company,” helium explained.
According to Kebira, it is an breathtaking clip for stakeholders, arsenic the eventual listing of Dangote refinery could beryllium a important accidental for maturation and concern successful the market.
On its part, the nationalist president of New Dimension Shareholders Association, Mr Patrick Ajudua, said the listing of Dangote Refinery connected the Nigerian banal marketplace is simply a bully improvement for investors successful the superior marketplace and volition person a much affirmative interaction connected the Nigerian economy.
“As shareholders, we convey Aliko Dangote for his magnanimous determination to merchantability 10 per cent involvement successful the refinery presently with a capableness of 650mbpd and an enlargement people of 1.4mbpd. ...
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