The refinery has been positioned as a strategic project capable of transforming Nigeria’s petroleum supply chain by reducing the country’s longstanding dependence on imported refined petroleum products.
The Dangote facility was therefore seen as an important step towards increasing domestic refining capacity, conserving foreign exchange and strengthening energy security.
The proposed IPO would also provide an opportunity for Nigerian investors to acquire direct stakes in one of the country’s most prominent industrial projects.
A public listing of the refinery has been in the offing for several months, with expectations that it could help the company raise additional capital while broadening ownership and improving transparency through greater disclosure associated with being a publicly traded company.
If the refinery sells the 4.1 billion shares at the upper end of the indicative range of N595, the offer would generate about N2.44 trillion.
Depending on prevailing exchange rates, that would place the transaction within the range of $1.55 billion to $1.8 billion cited by the sources.
At the upper end, the transaction could rank among the biggest IPOs ever recorded in Nigeria, potentially drawing significant attention from domestic institutional investors, retail investors and international funds.
The planned September 14 opening of the order book will therefore be an important milestone as investors await the final terms of what is expected to be a landmark transaction for both Dangote Refinery and Nigeria’s capital market.
At the proposed N525 share price, the cost of different share parcels goes as follows: 100 shares equal N52,500; 1,000 shares would translate to N525,000;
10,000 shares equal N5,250,000 while 100,000 shares would translate to N52,500,000.
Several investors including Dangote’s associate and billionaire Femi Otedola have indicated interest in the IPO as soon as it becomes a reality.
Meanwhile, Aliko Dangote, President of the Dangote Group, has confirmed that the initial public offering (IPO) will open on September 14, with shares priced at N525 each on the Nigerian Exchange Limited (NGX).
He spoke during a television interview and in separate conversations with investors and analysts while visiting Botswana.