As the Dangote Refinery gears up for its significant listing on the main board of the Nigerian Exchange Limited (NGX), it was revealed on Friday that Stanbic IBTC Capital, which is part of the Standard Bank Group and a leading investment bank in Nigeria, along with First Capital and Vetiva Capital Management, will act as advisory firms.
This highly anticipated listing on the NGX is expected to create substantial interest from both domestic and international investors and may alter the depth and valuation of the exchange.
Alhaji Aliko Dangote, President of the Dangote Group, announced last week that the shares of Dangote Refinery are set to be listed on the NGX within the next four to five months.
He made this announcement during a visit to the refinery by Bayo Ojulari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), along with several other senior executives from the state- owned oil company.
Dangote previously outlined a strategy to list a 10 percent stake of his $20 billion refinery on the NGX this year.
Furthermore, he revealed that discussions are underway with market regulators to enable future dividend payments in US dollars, creating a buffer against the ongoing challenges of currency fluctuation.
Dangote emphasized that his team is diligently working with the NGX and the Securities and Exchange Commission (SEC) to finalize the structure for the proposed initial public offering (IPO).
Regarding the advisory firms selected for the Dangote Refinery's listing on the NGX, Mr. Ambrose Omordion, Chief Operating Officer of Investdata Consulting Ltd., remarked that these three firms have historically contributed significantly to major listings on the Exchange.
He added that these firms possess the expertise necessary to facilitate a successful listing on the NGX.
In a related development, Dangote Cement Plc, a branch of Dangote Industries Limited, has entered into a monumental agreement with the Chinese company Sinoma International Engineering to construct 12 new projects and expand existing ones throughout Africa.
This significant agreement, sealed in Lagos over the weekend and valued at over $1 billion, reflects the company’s long-term growth trajectory and aligns with the broader goals of the Dangote Group’s Vision 2030, as stated by a representative of Dangote Group.
During the signing ceremony, Dangote characterized the new projects as vital components in achieving Dangote Cement’s goal of reaching an annual production capacity of 80 million tonnes by 2030 and supporting the Group’s target of generating $100 billion in revenue by that year.
He explained that the new initiatives would enhance Dangote Cement’s dominance in the domestic market, stimulate export efforts, optimize current operations, and improve production efficiency and capacity growth.
Under the Strategic Framework Agreement, Sinoma International Engineering will collaborate with Dangote Cement to deliver new facilities, expand existing operations, and implement modernization measures designed to bolster operational performance across key markets.
The new projects will include an integrated line in Northern Nigeria along with several satellite grinding units, a new facility in Ethiopia, and additional projects in Zambia, Zimbabwe, Tanzania, Sierra Leone, and Cameroon.
In Nigeria, Sinoma is slated to oversee various projects in Itori, Apapa, Lekki, Port Harcourt, and Onne.
These initiatives demonstrate Dangote Cement’s commitment to solidifying its leadership role within the African cement industry and increasing its competitiveness on a global scale.
During the signing event, Emmanuel Ikazoboh, Chairman of the Board of Directors of Dangote Cement Plc, expressed that the new ventures will position the company to significantly contribute to realizing the Dangote Group’s Vision 2030.
According to Ikazoboh, the completion of these projects will enhance Dangote Cement’s capacity and its dominant stance in Africa’s cement sector.
Mr. Arvind Pathak, the Group Managing Director of Dangote Cement, affirmed that the agreement showcases the company's resolve to enhance its investments in African markets to address supply deficits and support the continent’s infrastructural objectives.
He stated that Dangote Cement aims to ensure full self-sufficiency in cement production in Africa, thereby creating added value that fosters increased economic activity and reduces unemployment.
Recently, Dangote Cement has expanded its Gas Sales and Purchase Agreements (GSPA) with subsidiaries of the Nigerian National Petroleum Company Limited (NNPC), specifically Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).
This agreement serves as a crucial enabler in advancing Dangote Cement's strategic goals.
The arrangement ensures the provision of gas necessary to promote the adoption of compressed natural gas (CNG) as Autogas and meet the rising gas requirements as production capabilities in Nigeria grow.
It also supports the use of cleaner fuel alternatives for both Autogas through CNG and for gas to facilitate increased production output.
Dangote Cement operates in various African countries, possessing integrated plants, grinding facilities, and distribution hubs strategically positioned to cater to distinct markets.
The company's ongoing initiatives include plant upgrades, capacity expansions, and the implementation of advanced energy-efficient technologies aimed at lowering operational costs and reducing its carbon footprint.
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