During the first two trading sessions of this week, equity investors in the stocks of companies under the Dangote Group have gained over 1.2tn. This has indicated an increased appetite in the stocks of the companies listed on the Nigerian Exchange Limited, following the commencement of production by the Dangote Petrochemical Refinery.
Dangote Petroleum Refinery announced the commencement of production of diesel and aviation fuel on Friday, as reported by NewsNow. The listed companies; Dangote Cement Plc, Dangote Sugar Refinery Plc, and NASCON Allied Industries Plc; are in the process of merging with another firm, Dangote Rice Limited.
In August, it was revealed that the firms had agreed to integrate into a single entity. The merger will be executed courtesy of “a scheme of merger under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations,” according to a statement by Dangote Sugar.
The value of the increases across the companies led to a gain of N1.245tn for shareholders in the companies, the largest being in Dangote Cement.
Dangote Refinery’s listing is one that several analysts had projected for this year, seeing it as a major boost for the capital market alongside the listing of Dangote Foods and NNPC Limited.
On the commencement of production at the refinery, Dangote described it as “a game changer” and “an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.”
The billionaire owner of the conglomerate, in November, revealed plans to list his $20bn Dangote Petrochemical Refinery on the NGX. In an interview with Financial Times, Dangote mentioned that with the resolution of challenges with crude oil supply to the refinery, “We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”
The refinery, which is expected to produce diesel, kerosene, and jet fuel, was officially opened by former president, Muhammadu Buhari, in May.
Billionaire businessman, Femi Otedola, has expressed that Dangote Refinery will champion energy security in Nigeria. Otedola emphasized the refinery’s role in meeting the nation’s requirements for all refined petroleum products and its potential to act as a catalyst for a new era of prosperity for the subcontinent.
Otedola added, “I heartily congratulate my bestie #AlikoDangote as the 8th Wonder of the World – the $20bn #DangoteGroup Refinery – officially commences production.”
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