In February, Aliko Dangote disclosed during a press tour of
the Dangote Refinery that Nigerians will have the opportunity to invest
directly in the Dangote Refinery in the next four to five months.
While potential investors anticipate the listing, the head
of the Nairobi Securities Exchange Plc recently revealed that Aliko Dangote
intends to pursue a multiple-listing strategy, offering equity in his refinery
across several African capital markets.
An email from FirstCap CEO Ukandu, as seen on Bloomberg,
showed that Dangote designated Stanbic IBTC Capital Ltd., Vetiva Advisory
Services Ltd., and FirstCap Ltd. to provide advice on the IPO for Dangote
Petroleum Refinery and Petrochemicals FZE.
“The plan is to structure a pan-African IPO,” Frank Mwiti,
CEO of the Nairobi exchange, said after a meeting last week between the heads
of African exchanges and billionaire Dangote in Lagos, Nigeria’s commercial
capital.
This sort of multiple-listing would represent a historic
milestone for the continent, basically the first in Africa.
Such a move is expected to facilitate the advancement of
stock exchanges in Nigeria, which is currently positioned to rejoin the FTSE
Russell frontier-markets benchmark, and other participating countries where the
refinery is listed.
Dangote’s plan to list his oil refinery
In July last year, Aliko Dangote announced plans to
float his oil refinery on the stock market, following public scrutiny that
the billionaire preferred foreign partnerships.
Nigerian President Muhammadu Buhari has inaugurated
Dangote Petroleum Refinery and Petrochemicals, the largest single-train
refinery in the world with 650,000 barrels per day refining capacity.
“At the moment, our main interest is to list on the
exchange, so that every living Nigerian can own part of the refinery,” he
stated.
“Somebody asked me a question, is it 5 or 10 percent you
want to sell, and I said that when we are going to sell the shares, we will not
put a cap, if they happen to buy 55% and I own 45%, so be it,” he added.
By October, the CEO of the Dangote Group, during an
interview with S&P Global, disclosed plans to sell at least 5% of the
Dangote Refinery on the Nigerian Exchange between then and the current
year.
“We don’t want to keep more than 65 to 70 per cent. Shares
will be offered incrementally, depending on investor appetite and market
depth,” he stated.
The declaration came as he announced his intention to double
his oil refining operations, thereby increasing production capacity to 1.4
million barrels per day.
The Dangote Group built the $20 billion factory, which
currently has the capacity to refine up to 650,000 barrels of crude oil each
day. – Business Insider Africa