The Dangote Group has appointed United Capital as a Joint Stockbroker on the proposed Initial Public Offering of the Dangote Petroleum Refinery. This was disclosed at a United Capital Investor Relations conference call held today.
The appointment places United Capital alongside the previously announced advisory and distribution team for what is expected to be the largest equity capital market transaction in Nigerian history and the largest IPO on any African exchange.
IPO Structure: A $2 Billion “Retail First” Offering
Following Aliko Dangote’s announcement on February 21, the IPO structure is coming into clearer focus:
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Stake for Sale: The Group plans to list a 5% to 10% stake in the refinery that cost $20 billion to build.
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The “Dollar Dividend” Hedge: In a first for the NGX, investors can buy shares in Naira but choose to receive dividends in US Dollars, backed by the refinery’s projected $6.4 billion annual export revenue.
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Valuation Target: Analysts estimate the listing could propel the NGX market capitalization beyond ₦200 trillion, as the refinery is expected to debut with an initial valuation of $40 billion to $50 billion.
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