KEY POINTS
- Dangote Refinery has hired three investment banks to manage a historic stock market listing that could value the company at up to $50 billion.
- The offering may allow investors buy shares in naira but receive dividends in dollars, pending regulatory approval.
- Separately, Dangote Cement signed a $1 billion deal to expand production across Africa and boost infrastructure supply.
Nigeria’s biggest industrial project is preparing for a major financial milestone. The Dangote Group has selected three investment firms to oversee what could become the largest share sale ever seen on the Nigerian Exchange.
The planned listing of Dangote Petroleum Refinery & Petrochemicals FZE signals that the company is moving from planning stage to real execution.
The refinery plans to sell between 5% and 10% of its equity. The facility, which cost about $20 billion to build, is estimated by analysts to be worth $40 billion to $50 billion when listed.
If that valuation holds, the listing could push the Nigerian Exchange’s total market value beyond ₦200 trillion, marking a major boost for Nigeria’s capital market.
Another feature drawing attention is its proposed dividend structure.
Investors may be able to buy shares in naira but receive dividends in US dollars, an arrangement that could help protect foreign investors from currency risk. Regulators, including the Securities and Exchange Commission, are currently reviewing this structure.
Cement Expansion Deal Across Africa
In a separate development, Dangote Cement signed a deal with Sinoma International Engineering to build and expand plants across Africa at a cost exceeding $1 billion.
The projects will cover countries such as Ethiopia, Zambia, Zimbabwe, Tanzania, Sierra Leone, and Cameroon, along with multiple Nigerian sites including Itori, Apapa, Lekki, Port Harcourt, and Onne.
Group Managing Director Arvind Pathak said the goal is to close supply gaps and strengthen infrastructure development across the continent. Board Chairman Emmanuel Ikazoboh added that the expansion will increase production capacity and reinforce the company’s market leadership.
To ensure stable production, Dangote Cement also secured an upgraded gas supply agreement with subsidiaries of the national oil company.
The arrangement guarantees fuel for new plants and supports the company’s move toward compressed natural gas for transportation.
