A senior official declared on Tuesday that the Dangote refinery in Nigeria intends to float on both the Nigerian and London stock markets simultaneously.
Aliko Dangote, the chairman of the Dangote group, was cited in media sources on Tuesday as saying he might try to list the business in Nigeria by the end of the year.
Executive at the Dangote refinery, Devakumar Edwin, told Reuters that the refinery’s exclusive listing in London would be too much for the Nigerian Stock Exchange to handle alone.
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He said, “We have listed all our businesses. The NSE (Nigerian Stock Exchange) will not have adequate depth to handle exclusively the petroleum refinery. We would have to take it to LSE (London Stock Exchange) but also list in NSE.”
Africa’s richest man also has interests in Dangote Cement, Dangote Flour Mills, and Dangote Sugar, all of which are listed on the Nigerian stock exchange.
The refinery, Africa’s largest, is on a peninsula on the outskirts of Lagos, the commercial capital, and was built for $20 billion after several years of delays. It has the capacity to refine up to 650,000 barrels per day (bpd) and will be the largest in Africa and Europe once it reaches full capacity this year or next. Dangote has been working to secure crude supplies for the refinery.
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The Dangote refinery recently secured a deal with oil major TotalEnergies for the supply of crude oil to the facility. The refinery in recent times has had to import oil from the United States despite being located in Africa’s biggest oil producer.
Planned commencement of PMS refining
The planned listing of the refinery on both the NGX and LSE coincides with plans for the refinery to start production of PMS.
The Chairman of the refinery, Alhaji Dangote had earlier stated that refining of PMS would begin next month in contrast to opinions from Standard and Poor’s (S&P) analysts who had earlier stated that a more realistic timeline for roll out of PMS would be in the fourth quarter of the year.
