NGX Prepares for Dangote Refinery IPO, Doubles Efforts to Midwife African Exchanges Linkage Project

The Nigerian Exchange Group (NGX Group) is actively preparing for the Initial Public Offering (IPO) of Dangote Refinery, a significant continental project. The refinery is expected to offer three billion ordinary shares at $0.35 per share, with preliminary investor demand reportedly surpassing $2 billion. This upcoming IPO is seen as a major event for the Nigerian capital market and the broader African financial landscape.

According to reports citing a placement document, investors must subscribe to a minimum of one million shares, amounting to $350,000, with subsequent purchases in multiples of 500,000 shares. These shares will be subject to a 365-day lock-up period. The proceeds from the IPO are earmarked for expansion initiatives and general corporate purposes as the refinery scales up its operations and solidifies its market position.

NGX Group Chairman, Dr. Umaru Kwairanga, discussed these preparations during a visit to the Abu Dhabi Stock Exchange (ADX) in the United Arab Emirates. He indicated that the Dangote Refinery might consider a dual listing in a global financial center, expressing hope for active participation from Middle East investors, with roadshows potentially taking place in the UAE.

During his meeting with ADX executives, Kwairanga emphasized the NGX's commitment to the African Exchanges Linkage Project, aiming to foster greater integration among African stock markets. He also solicited collaborative efforts in knowledge sharing and training programs between the two exchanges. Kwairanga commended the UAE's stable business environment despite geopolitical tensions, attributing it to a solid foundation and strong leadership.

Kwairanga highlighted the substantial improvements in the Nigerian capital market's performance and operations over recent years, noting that the NGX's index and market capitalization have more than doubled. He also referenced President Bola Ahmed Tinubu's recent visit to Abu Dhabi, aimed at informing investors about Nigeria's ongoing economic reforms and its attractiveness as a business destination.

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In Nigeria, we are also preparing for Dangote Refinery IPO which is seen as a continental project. Hopefully, the refinery which is one of the biggest refineries in the world will consider a dual listing in a global financial centre and we hope to have the active participation of Middle East investors with roadshows likely in the UAE.