The Dangote Group has appointed Stanbic IBTC Capital, Vetiva Capital Management, and First Capital as lead issuing houses and financial advisers for its planned listing of its $20 billion Dangote Petroleum Refinery and Petrochemicals on the Nigerian Exchange (NGX) Limited in the coming months.
According to reports, which cited sources familiar with the matter, the listing could mark Africa’s largest equity offering, with plans to float 5-10 per cent of the refinery at a debut valuation of $40-50 billion. This could potentially boost the Nigerian main bourse’s market cap past N200 trillion from the current almost N125 trillion.
Stanbic IBTC, part of Standard Bank, will handle international book-building and foreign investor outreach, while Vetiva, with prior Dangote listing experience, focuses on local retail and regulations.
Late last month, the chairman of Dangote Group, Mr Aliko Dangote, said that within the next five months, Nigerians should be able to purchase shares of the refining subsidiary of his conglomerate.
The Lagos-based refinery is the largest single-train refinery in the world with 650,000 barrels per day refining capacity. There are efforts to boost the capacity to 1.4 million barrels per day soon.
“Nigerians too will have an opportunity in the next, maybe a maximum of four to five months. There will actually be an opportunity to buy the shares,” he said during a tour of the facility by the chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bayo Ojulari, alongside members of the company’s executive management.
The facility, which is now operating at full capacity, a world-record milestone for a single-train refinery, comes after the completion of an intensive performance testing on the refinery’s Crude Distillation Unit and Motor Spirit production block.
The refinery is now positioned to supply up to 75 million litres of petrol daily to the domestic market, an increase from the 45 million – 50 million litres delivered during the recent festive period.
The development can reshape Nigeria’s energy landscape and reduce the country’s longstanding dependence on imported refined products while positioning the country as a net exporter to West African markets.
Yet, the refinery faces difficulty securing adequate crude oil supplies from Nigerian producers, forcing it to import feedstock from the US, Brazil, Angola, and other countries.