The Nigerian Exchange Group (NGX) says it expects a significant boost in market capitalisation, shareholder numbers and trading volumes following the Dangote Petroleum Refinery initial public offering (IPO).
The Group Chairman of NGX, Umaru Kwairanga, disclosed this at the Facts Behind the Offer presentation held at the NGX Marina Head Office in Lagos.
Kwairanga linked the anticipated market impact to gains he said the refinery had already delivered to the wider Nigerian economy.
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“The Dangote Refinery has already had a major impact on the Nigerian economy and the daily lives of Nigerians. Because of it, Nigeria is now a net refined fuel exporter. Partly because of it, our foreign reserves are at their highest in two decades, and our currency’s exchange rate is improving. Because of it, petrol queues due to fuel scarcity are gone,” he said.
The NGX chairman said the opening of the offer was expected to deliver similar positive impacts on the capital market.
“Given the enthusiasm for this IPO, I am confident that we are going to see a significant boost in market capitalisation, number of shareholders and trading volumes and values at the end of the offer and after the listing of the enterprise sometime in the fourth quarter,” Kwairanga said.
He further highlighted that the offer demonstrated the capacity of African capital markets to connect local savings with enterprises capable of competing internationally.
For the NGX Group Managing Director, Mr Temi Popoola, the Dangote Petroleum Refinery IPO demonstrated the Exchange’s growing capacity to support businesses with global ambitions and mobilise long-term capital for economic growth.
Also speaking, the Chief Executive Officer of the Botswana Stock Exchange, Kesegofetse Molatlhegi, commended Dangote for demonstrating that African ambition could deliver globally significant industrial projects.
“I want to congratulate you for the audacity to show the world that African ambition can build on a scale that can change the world. I want to thank you for proving that Africans can own Africa’s ambition. Africans can own what belongs to Africa. I always say, and when you read my commentary in the market, I say Africa is not poor; it is unmonetised. You don’t cross an ocean to go and conquer and colonise a poor continent. Africa is not poor; it’s unmonetised,” Molatlhegi said.
At the offer price, Dangote Petroleum Refinery is expected to achieve an implied market capitalisation of approximately N65.22 trillion.
Together with the market capitalisations of Dangote Cement Plc and Dangote Sugar Refinery Plc, the listing is projected to create an equity cluster valued at about N83.5 trillion.
This would make the Dangote Group the largest equity cluster on the Nigerian Exchange.
