Dangote Refinery Valued Up to N82.62 Trillion Ahead of IPO

Dangote Petroleum Refinery and Petrochemicals FZE has been independently valued by two Nigerian investment firms, CardinalStone Research and Chapel Hill Denham, at between N77.7 trillion and N82.62 trillion, significantly higher than the N65.22 trillion indicative market capitalisation for its upcoming IPO on the Nigerian Exchange (NGX). The IPO prospectus indicates that the company will offer 4.1 billion new shares at N525 each, alongside 120.13 billion existing shares.

CardinalStone's 12-month equity valuation stands at N77.7 trillion (approximately $58.8 billion), while Chapel Hill Denham's fair equity value is N82.62 trillion (about $62.53 billion). The valuations are based on projected profits and cash flows, with expectations of increased earnings as production ramps up.

Of the N2.11 trillion net IPO proceeds, N841 billion is allocated for utilities and infrastructure, N686.5 billion for refinery process units, and N583.5 billion for expansion works. Investors face potential upside if performance meets expectations, but also downside risk if it falls short.