Dangote refinery investors gain N1.2tn in two days

Bisola David
Bisola David
Dangote refinery investors gain N1.2tn in two days

Equity investors in the stocks of companies under the Dangote Group have gained over N1.2 trillion in the first two trading days of this week.

This indicated a noticeable surge in interest in the equities of the companies listed on the Nigerian Exchange Limited after the Dangote Petrochemical Refinery started producing.

Economic Confidential stated that Dangote Petroleum Refinery began producing diesel and aviation gasoline on Friday.

The listed companies are Dangote Cement Plc, Dangote Sugar Refinery Plc, and NASCON Allied Industries Plc, with the latter undergoing a merger with Dangote Rice Limited.

The corporations had agreed to merge into a single organization, according to reports from August.

The merger will be carried out through “a scheme of merger under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations,” Dangote Sugar said in a statement.

Through the scheme consideration, 12 ordinary shares of NASCON will be exchanged for 11 Dangote Sugar shares, for a total of 2,428,651,847 new ordinary Dangote shares. All three enterprises are part of Dangote Industries Limited, which is controlled by Africa’s richest man, Aliko Dangote.

On Friday, Dangote Cement concluded trading with a market capitalization of N5.964 trillion, Dangote Sugar was worth N828.417 billion, and NASCON was worth N158.966 billion.

By the end of trade on Tuesday, Dangote Cement’s capitalization had risen to N7.018tn with a unit priced at N411.90. Dangote Sugar’s market capitalization rose to N988.755bn and NASCON Allied appreciated to N189.434bn.

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 Sugar and NASCON Allied Industries both closed up 10% at N81.40 and N71.50 per unit, respectively. NASCON also emerged as the most traded securities in terms of value, with N2.57 billion worth of its units traded.

Dangote praised the start of production at the refinery as “a game changer” and “an important achievement for our country because it demonstrates our ability to develop and deliver large capital projects.”

Meanwhile, in November, the conglomerate’s billionaire owner announced plans to list his $20 billion Dangote Petrochemical Refinery on the NGX.

In an interview with the Financial Times, Dangote stated that after resolving difficulties with crude oil delivery to the refinery, “We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”

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