Business
Dangote Refinery to launch $1.5 billion IPO mid-September
Dangote Refinery will open the order book for its initial public offering to retail investors on 14 September, effectively kickstarting the $1.5 billion public share sale, said to be the continent’s biggest ever, Reuters reported Friday, citing two sources who have close knowledge of the move.
Pricing will commence at any moment now at N525 per share ($0.40), with 4.1 billion shares up for subscription, the report added, noting that the sources spoke on the understanding that their identities will not be disclosed.
The crude processing plant, which holds the distinction of being the world’s largest single-train refinery, will have the latitude to sell 15 per cent of the offer size in addition to the total number of shares up for grabs in the event the transaction is oversubscribed, a source was quoted as saying.
The facility, owned by Africa’s richest man, Aliko Dangote, is ready to double nameplate capacity to 1.4 million barrels per day (bpd).
Financing will be provided by proceeds from both the planned equity sale and a private placement held in July, which raised $2.5 billion from institutional investors and high-net-worth individuals. It was 270 per cent oversubscribed.
Another refinery, the size of the current one at 700,000 bpd, is to be established in the coastal town of Lamu in Kenya, strategically conceived by the Dangote Group as the gateway to the broader East African market.
READ ALSO: Dangote Cement sets date for London capital markets day ahead of LSE listing
Last month, the group offered a 30 per cent stake in the proposed refinery to countries in the region, including Kenya, Rwanda and Ethiopia.
The groundbreaking is scheduled for this month.
Dangote Refinery is exploring a cross-border listing on the Johannesburg Stock Exchange, the continent’s foremost bourse, following a primary listing in Lagos.
The corporation said in August that a London listing, which its sister company, Dangote Cement, is actively pursuing, is not on the cards, adding that a potential listing in the UK capital is at least three years away.
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Minister of Aviation and Aerospace Development Festus Keyamo has approved the design of a proposed monorail to link Ikeja Railway Station in Lagos to Murtala Muhammed International Airport (MMIA) in the state.
The project is expected to connect the airport to the Lagos Red Line rail network, providing passengers and other airport users with an alternative to road transport.
Mr Keyamo announced the approval on Tuesday after a meeting with the managing director of the Federal Airports Authority of Nigeria (FAAN), the permanent secretary of the Federal Ministry of Aviation and engineering teams from the ministry and FAAN.
In a post on X, the minister said the proposed line will have five stations, running from Ikeja Railway Station to the international airport’s Terminal 1, which is currently undergoing reconstruction.
He listed the proposed stations/stops as Ikeja Station, Domestic Airport Station, Beesam Station, Toll Gate Station and MMIA Airport Station.
“The monorail is an integral part of the reconstruction of the nation’s major gateway at the MMIA in Lagos,” Mr Keyamo said.
The design approval follows earlier announcements by the Federal Government about plans to extend rail services from Ikeja to the airport’s domestic and international terminals.
In June, PREMIUM TIMES reported that the government was working with the Lagos State Government to extend the existing rail network to the airport and to expand connectivity.
Recently, Olubunmi Onabanjo-KukuFAAN’she managing directAN, said talks on financing the planned airport rail lint had reached an advanced stage.
Speaking at the World Aviation Festival in Lisbon, Portugal, on 18 October, Ms Onabanjo-Kuku stated that efforts were ongoing to finalise the project’s financing structure.
The planned link is expected to connect the airport’s three terminals to the Red Line as part of its wider modernisation programme.
The proposed rail connection forms part of broader efforts to upgrade facilities at the Lagos airport and improve passenger movement.
Terminal 1 of the international airport is undergoing reconstruction, while other infrastructure upgrades are intended to boost airport operations and the passenger experience.
The airport serves as a major gateway for international travel to and from Nigeria, making access to its terminals crucial for passengers and other users.
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