Get Guardian on GoogleDangote Petroleum Refinery and Petrochemicals is targeting an early December listing on the Nigerian Exchange Limited (NGX), following the closure of its N2.15 trillion initial public offering (IPO), a development that could significantly increase the value of equities listed on the Exchange.
The refinery was preparing to officially list its shares on the NGX in early December, with the development potentially pushing the equities market capitalisation to N230 trillion.
The expected listing comes after the refinery closed its public offer on October 27, following an extension of the subscription period from the initial October 13 deadline.
The offer involved 4.1 billion ordinary shares at N525 each, giving a potential gross capital raise of N2.1525 trillion if fully subscribed.
According to the revised offer timetable, registrars are expected to complete the collation of applications by November 3, while the proposed basis of allotment is scheduled to be submitted to the Securities and Exchange Commission (SEC) on November 10.
Regulatory clearance of the allotment is targeted for November 17, after which the shares are expected to be credited to successful investors’ Central Securities Clearing System (CSCS) accounts and admitted for trading.
The shares could commence trading on the NGX around December 8, based on the revised timetable, although the date remains subject to regulatory processes.
The proposed listing is expected to make the refinery one of the largest companies on the Nigerian stock market by market capitalisation.
The refinery’s offer could significantly expand the size of the Nigerian equities market as market assessments have put its implied market value at about N65.22 trillion, based on the offer price and enlarged share capital.
The N2.1525 trillion represents the potential proceeds from the sale of the 4.1 billion new shares, while the implied market capitalisation reflects the estimated value of the company’s entire equity.
The listing could therefore reshape the size and composition of the Nigerian equities market, although its actual impact will depend on the final number of shares admitted to trading and the market price after listing.
