Chairman of the Nigerian Exchange Group (NGX Group), Dr. Umaru Kwairanga, has disclosed that the Exchange was getting set for the Initial Public Offering (IPO) of Dangote Refinery which is reportedly offering three billion ordinary shares at $0.35 per share, with investor demand already exceeding $2 billion.
Kwairanga expressed NGX’s preparations for the IPO at the weekend during a visit to the Abu Dhabi Stock Exchange (ADX), United Arab Emirates (UAE) where he met with their board and management.
He said, ” 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.”
Quoting sources and a placement document, Reuters on Friday reported the refinery is offering 3 billion ordinary shares at $0.35 per share, with investor demand already exceeding $2 billion.
According to the report, investors must subscribe to a minimum of one million shares ($350,000), with additional purchases in multiples of 500,000 shares, adding that shares will be subject to a 365-day lock-up period.
Proceeds will be used for expansion and general corporate purposes as the refinery ramps up operations and strengthens its market position, the document showed.
During the meeting with the executives of the UAE-based exchange at the weekend, Kwairanga solicited collaborative efforts between the NGX and DAX, noting that both markets could explore knowledge sharing and training programmes.
He expressed delight that despite the ongoing geopolitical tensions, the Abu Dhabi Exchange and the United Arab Emirates in general are working and peaceful and still a global destination of choice for business.
This, he observed, was a clear demonstration of the solid foundation laid by the founding fathers and the resilience, determination and focus of current leaders, adding that he had no doubt that the UAE will emerge stronger from present issues.
He said, the NGX which he chairs and the Nigerian capital market have witnessed dramatic improvement in performance and operations over the last couple of years.
“Our index and market capitalisation has more than doubled in the last couple of years and we have been attracting renewed interest from investors from all parts of the globe, including the middle east.
“I recall that our President, Bola Ahmed Tinubu, GCFR, who is Nigeria’s leader and chief marketer was in Abu Dhabi earlier this year to inform investors about ongoing economic reforms in Nigeria and why it is a very attractive destination for business,” Kwairanga said in a statement which he personally signed.
The NGX Chairman said the exchange is also at the forefront of the African Exchanges Linkage Project which will seamlessly link stock exchanges in several African countries for intra African trading and broaden the continent’s capital markets significantly.
“I believe during this visit, we will discuss areas for collaboration between our two exchanges in areas such as exchange of knowledge and training programmes especially product development, cross border listings, openings in Nigeria for UAE quoted companies that may wish to expand. One product /platform that I believe we can work on is Tabadul.
