₦airaland Forum

https://www.youtube.com/watch?v=f8tDbcuOlfU

The proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE could raise about ₦2.15 trillion, potentially making it one of the largest transactions in Nigeria’s capital market.

The Securities and Exchange Commission (SEC) has approved the offering of 4.1 billion ordinary shares at ₦525 each, while also registering the company’s existing 120.13 billion ordinary shares.

The IPO gives investors an opportunity to acquire a stake in one of Africa’s largest industrial projects. However, the investment also carries risks that prospective subscribers should understand.

Below are 10 facts to understand before investing.

1. The refinery has significant production capacity

Located in Ibeju-Lekki, Lagos, the Dangote refinery occupies about 2,635 hectares and has a stated refining capacity of 700,000 barrels per day.

Its ability to maintain strong production levels and operate efficiently will be important to its revenue and profitability.

2. The offer could generate ₦2.15 trillion

The 4.1 billion shares being offered at ₦525 each could raise approximately ₦2.15 trillion if fully subscribed.

The size of the transaction could place it among the biggest public offerings ever recorded in Nigeria’s capital market.

3. Nigeria provides a sizeable market

Nigeria’s large demand for refined petroleum products gives the refinery access to a substantial domestic market.

The company could also earn foreign exchange from exports, although its performance will depend on factors such as crude supply, refining margins, product prices, demand and operating costs.

4. Subscribers will become shareholders

Investors who subscribe to the IPO will acquire an ownership interest in the refinery business.

They could benefit from capital appreciation if the share price rises and may receive dividends if the company generates sufficient profits and approves distributions.

At the same time, shareholders will bear the risks associated with the company’s performance and developments in the refining industry.

5. Capacity could increase to 1.4 million barrels per day

Dangote Refinery is pursuing an expansion that could eventually increase its refining capacity to 1.4 million barrels per day.

An expansion of that scale could boost production, revenue and export opportunities. However, investors should consider the funding requirements, costs and execution risks involved.

6. The ₦525 offer price does not guarantee returns

The IPO price of ₦525 should not be viewed as a guaranteed profit.

Following the listing, the market price of the shares will be determined by factors including demand and supply, the company’s financial performance, investor sentiment and prevailing economic conditions.

The shares could therefore trade above or below the offer price.

7. The complex is more than a refinery

The Dangote industrial complex includes a 900,000-tonnes-per-annum polypropylene plant, a 435-megawatt power plant and 177 storage tanks with a combined capacity of about 4.742 billion litres.

It also has marine infrastructure supporting its operations.

The integrated nature of the facility could provide operational efficiencies and create additional commercial opportunities for the business.

8. The ownership structure is important

The company has 120.13 billion existing ordinary shares, in addition to the 4.1 billion shares proposed for the IPO.

Investors should carefully examine the final prospectus to determine the percentage of the company being offered to the public, the free float, shareholder rights and the level of ownership concentration.

9. Size does not automatically mean profitability

The refinery’s enormous capacity alone does not make its shares an attractive investment.

Prospective investors should assess the company’s revenue, profit margins, production volumes, capacity utilisation, debt, cash flow and operating expenses.

They should also consider risks linked to foreign exchange, crude oil availability, global oil prices and regulatory changes.

10. The IPO could influence Nigeria’s capital market

A successful listing would give retail and institutional investors direct exposure to one of Africa’s biggest industrial assets.

It could also deepen activity on the Nigerian Exchange and encourage other large privately owned Nigerian companies to consider public listings.

What investors should check

SEC approval does not amount to an investment recommendation. Prospective investors should study the final offer documents and independently assess the company’s financial performance, valuation, debt position, dividend prospects, use of proceeds, expansion plans, ownership structure and major operational risks.

The potential ₦2.15 trillion transaction represents a significant opportunity for Nigeria’s capital market, but its size should not replace proper due diligence.

Ultimately, investors need to determine whether the refinery’s expected future earnings and cash flows justify the ₦525 offer price.

https://www.tvcnews.tv/dangote-refinery-ipo-10-facts-to-understand-before-investing/?fbclid=Iwb21leAUU3cRwZG9mBWV4dG4DYWVtAjExAHNydGMGYXBwX2lkDDM1MDY4NTUzMTcyOAABHk6mtKdQTsqVdNIvELXKwpdXT_-vNHTCRtX9Z1_8xBJVJ0dBoX0mkObMk5oB_aem_6FI4LVOfgZfGsJaxQiiK5w


https://www.youtube.com/watch?v=S7P8qp33St8&pp=iggCQAE%3D

Very important message

They want profit but don't know shii

Go Go Dangote!
Our 5% brothers, over to you to condemn it

All i know is that investors will reap bountifully at the long run. Go for it if you can.

this going down history and may turnout a game changer.

I will buy when it's 75n, trust dangote at your peril

I can't buy when a commodity is on his highest price what if it starts falling then the value of my shares start falling too aby you try well well

nlfpmod:

https://www.youtube.com/watch?v=f8tDbcuOlfU



https://www.tvcnews.tv/dangote-refinery-ipo-10-facts-to-understand-before-investing/?fbclid=Iwb21leAUU3cRwZG9mBWV4dG4DYWVtAjExAHNydGMGYXBwX2lkDDM1MDY4NTUzMTcyOAABHk6mtKdQTsqVdNIvELXKwpdXT_-vNHTCRtX9Z1_8xBJVJ0dBoX0mkObMk5oB_aem_6FI4LVOfgZfGsJaxQiiK5w


https://www.youtube.com/watch?v=S7P8qp33St8&pp=iggCQAE%3D

I think, if snake don't bite someone,you won't be scared of the earth worm..
No harm in trying... All dye na dye...

cyril10:
All i know is that investors will reap bountifully at the long run. Go for it if you can.

There is absolutely no guarantee about that. I will rather wait for the security to gain altitude so that the direction of travel is clear. Let it hit the market first to know the true value.

Reference:
There is absolutely no guarantee about that. I will rather wait for the security to gain altitude so that the direction of travel is clear. Let it hit the market first to know the true value.

No, other people will build refinery and compete with Dangote, as long as he doesn't block government from doing it.

SixSeven:
Wait o, are we going to ignore how you will become a member of Dangote's empire and you will not want the US-Iran war to end? You will want the fuel price to be very high, wouldn't you?

Will you want NNPC refineries to work?

Will you want subsidy returned? 🤔

I no say make u no buy shares but you know as dem de always talk am say Dangote is a business man, businessmen are only interested in one thing, PROFIT and market share.

Profit means that as long as there are problems and your company is making money, you are happy. Na why we no still get light till today. Some people are benefiting from the darkness.

Market share means you don't want competitors to take the market share. You and I are very aware of Dangote in other industries.

Anyway, let me call my stockbroker, let's buy that thing We are all in this together!

Another information

Saudi produces 7.2 million barrels of oil per day with a population of 38.4 million people.

Iran produces 4.5 million barrels of oil per day with a population of 90million people.

Libya produces 1.4 million barrels of oil per day with population of 7million people.

Nigeria produces 1.7million barrels of oil per day with a population of over 250million people .

So, Nigeria is not an oil rich country but just an oil producing country. It would be very difficult for government to continue to subsidize refined petroleum products.

Someone should give me platform to invest abeg , I heard bamboo is bad news

cyril10:
All i know is that investors will reap bountifully at the long run. Go for it if you can.

Even as electric cars are rising rapidly?
Kwontinu

sammirano:
I will buy when it's 75n, trust dangote at your peril

don't expect it to fall far low......it is a long term stock.

Dangote wants to offset his debt ,


If you don't gerrit, forgetritt

blingxx:
Someone should give me platform to invest abeg , I heard bamboo is bad news

Go to your bank. No need for all these fancy platforms

How or where can I buy. Pls hlp

Google and research.it's all over the news,on how to buy the IPO for beginners.The closing date is the 13th of October.You still have an apple time to invest.

Chimahussle:
How or where can I buy. Pls hlp

They don't understand business, they only know buying and selling

heykims:
Go Go Dangote!
Our 5% brothers, over to you to condemn it

My concern with this Dangote Refinery IPO is not whether the refinery is a great project. It clearly is. My concern is: at ₦525 per share, what exactly am I buying, and at what valuation?

We should be careful not to confuse “one of Africa’s biggest refineries” with “one of Africa’s best investments.” Those are two different things.

And there is one question I think every investor should be asking:

Why is only about 10% being offered to the public?

If the company has roughly 120.13 billion existing shares and is offering only 4.1 billion new shares, the public offer is a relatively small slice of the overall equity. That means the controlling shareholders will continue to have overwhelming ownership and control.

That isn't automatically bad. Many companies maintain concentrated ownership. But as a minority shareholder, you need to understand what that means for you.

You are essentially being invited to put fresh money into a gigantic business while the existing owners retain the dominant position. So don't just ask:

“How big is Dangote Refinery?”

Ask:

- What is the post-IPO valuation at ₦525?
- What are the company's actual profits and free cash flows, not just revenue?
- How much debt is sitting on the business?
- What is the actual capacity utilisation?
- How much does it cost to produce each barrel?
- How exposed is the business to FX and crude-supply risks?
- How much of the ₦2.15 trillion will actually strengthen the company?
- What percentage of future profits will realistically come back to shareholders as dividends?
- And most importantly, is ₦525 cheap, fair or expensive relative to those earnings?

The refinery can be an exceptional Nigerian industrial achievement and the IPO can still be overpriced.

That's the part investors need to separate.

Also, the proposed expansion from 700,000 bpd to 1.4 million bpd sounds exciting, but future capacity is not today's earnings. Expansion requires capital, execution and time. Investors shouldn't pay today's money based entirely on tomorrow's projections.

So before rushing into the IPO because of the Dangote name, I would wait for the full prospectus and financial statements and calculate the valuation properly.

A great company can be a bad investment at the wrong price.

The real question isn't “Will Dangote Refinery succeed?”

It is: “At ₦525, is the portion of Dangote Refinery being offered to me worth the price I'm being asked to pay?”

That's the question investors should answer before subscribing.

heykims:
Go Go Dangote!
Our 5% brothers, over to you to condemn it

Lol, you the 70% brother, is your standard of living better than the 5% brother close to you. Be honest with yourself and no insults. Since you don't have wisdom, you go hear words.
Are you better off than the so called 5% brothers ? Before you start reininng insults, I am a. Yoruba man and not igbo but I hate tribal bigotry

Straightforward and utterly confident in the Dangote Refinery’s future.

Technical Writer

nlfpmod:

https://www.youtube.com/watch?v=f8tDbcuOlfU

https://www.tvcnews.tv/dangote-refinery-ipo-10-facts-to-understand-before-investing/?fbclid=Iwb21leAUU3cRwZG9mBWV4dG4DYWVtAjExAHNydGMGYXBwX2lkDDM1MDY4NTUzMTcyOAABHk6mtKdQTsqVdNIvELXKwpdXT_-vNHTCRtX9Z1_8xBJVJ0dBoX0mkObMk5oB_aem_6FI4LVOfgZfGsJaxQiiK5w


https://www.youtube.com/watch?v=S7P8qp33St8&pp=iggCQAE%3D

For me, every Nigerian Should Buy and Invest in this Refinery,for the following reasons:
1.this is an Opportunity for All Nigerians to be involved in a Refinery Project - involving Our Oil 🛢️🪔 and we should be a Proud 🦚 Owners as Subscribers.
2.this Refinery is going to be one of the largest,if not the largest in Africa and around the World 🌎.
•You know what that means- the more the merrier!
3.the Poor Masses -should Invest and benefits from this opportunity that Dangote is Offering the Masses and let no one says he misses the Opportunity.
4.the Rich -will never tell you they are Benefitting from Other Dangote Public offers - like the Dangote Cement Industry etc .
5.Many will deceive others,
- for some hates the man,
-Some believes that he is a Monopoly player,
- Some believes that Dangote is part of our Problems in Nigeria, just because he is given the Opportunity by his brother -- but the question is- Is Dangote Making the Business to Prosper,if your answer is Yes,then Invest and Make Money 💰!
•But Can you see A Big Picture 🖼️ of -What Dangote Refinery and Dangote Industries - as a whole is like in the Future?
6.As An Investor, what you want includes:
• a guaranteed Returns on your Capital .
• Annual Dividend Payments - which shows a good returns,
• Regular Bonus -that show increase in Shares,for example, your Minimum Shares may Double ⏩ in a short period.
• Shares Appreciation is not Far ,as incredible share increases may be on the Way up ⬆️.
7-For example,- Price of this shares may skyrocket - as we see In other Dangote Industries.
8•This Refinery Shares is likely going to be Over- Subscribe, because Many Institutional Investors 👁️ are eyeing this a a Big time to Cash-Out.
9.Don't be perturbed -that even those who does not like Dangote,as a Person - may eventually join the frey of Investing heavily 🥺.
10.this Shares -Is Selling Nigeria To The Whole World 🌎!
•It is a BIG Deal,no doubt 🧐,but ensures you make- a good and rational decision in buying or not buying- by going through your Bankers, your Stock Markets Experts,your Prudent Accountants,etc - for Further Investments advice!

Hamachi:
My concern with this Dangote Refinery IPO is not whether the refinery is a great project. It clearly is. My concern is: at ₦525 per share, what exactly am I buying, and at what valuation?

We should be careful not to confuse “one of Africa’s biggest refineries” with “one of Africa’s best investments.” Those are two different things.

And there is one question I think every investor should be asking:

Why is only about 10% being offered to the public?

If the company has roughly 120.13 billion existing shares and is offering only 4.1 billion new shares, the public offer is a relatively small slice of the overall equity. That means the controlling shareholders will continue to have overwhelming ownership and control.

That isn't automatically bad. Many companies maintain concentrated ownership. But as a minority shareholder, you need to understand what that means for you.

You are essentially being invited to put fresh money into a gigantic business while the existing owners retain the dominant position. So don't just ask:

“How big is Dangote Refinery?”

Ask:

- What is the post-IPO valuation at ₦525?
- What are the company's actual profits and free cash flows, not just revenue?
- How much debt is sitting on the business?
- What is the actual capacity utilisation?
- How much does it cost to produce each barrel?
- How exposed is the business to FX and crude-supply risks?
- How much of the ₦2.15 trillion will actually strengthen the company?
- What percentage of future profits will realistically come back to shareholders as dividends?
- And most importantly, is ₦525 cheap, fair or expensive relative to those earnings?

The refinery can be an exceptional Nigerian industrial achievement and the IPO can still be overpriced.

That's the part investors need to separate.

Also, the proposed expansion from 700,000 bpd to 1.4 million bpd sounds exciting, but future capacity is not today's earnings. Expansion requires capital, execution and time. Investors shouldn't pay today's money based entirely on tomorrow's projections.

So before rushing into the IPO because of the Dangote name, I would wait for the full prospectus and financial statements and calculate the valuation properly.

A great company can be a bad investment at the wrong price.

The real question isn't “Will Dangote Refinery succeed?”

It is: “At ₦525, is the portion of Dangote Refinery being offered to me worth the price I'm being asked to pay?”

That's the question investors should answer before subscribing.

Thanks for the detail.
Let us see where it is headed first.
There are too many questions unresolved.

In addition to what you have pointed out it is important to note the political angle. The economy has to improve substantially so that the economic pressures on the public and calls for a subsidy reintroduction does not affect its operations.

Dangote is smart to lure people into broadening ownership so as to mitigate future political interference. But I am not too sure at the moment.

The IPO price of ₦525 should not be viewed as a guaranteed profit.
Following the listing, the market price of the shares will be determined by factors including demand and supply, the company’s financial performance, investor sentiment and prevailing economic conditions.

The shares could therefore trade above or below the offer price.

SEC approval does not amount to an investment recommendation. Prospective investors should study the final offer documents and independently assess the company’s financial performance, valuation, debt position, dividend prospects, use of proceeds, expansion plans, ownership structure and major operational risks.
The potential ₦2.15 trillion transaction represents a significant opportunity for Nigeria’s capital market, but its size should not replace proper due diligence.

Ultimately, investors need to determine whether the refinery’s expected future earnings and cash flows justify the ₦525 offer price.


Some highlights

People will complain of the devil yet would be the first to show up with a plate when it is serving dinner.

If you are a crypto trader, you should understand what you are getting into.

Reference:
Thanks for the detail.
Let us see where it is headed first.
There are too many questions unresolved.

In addition to what you have pointed out it is important to note the political angle. The economy has to improve substantially so that the economic pressures on the public and calls for a subsidy reintroduction does not affect its operations.

Dangote is smart to lure people into broadening ownership so as to mitigate future political interference. But I am not too sure at the moment.

He only gave out 10% he has the majority stake of 90% plus the valuation is way too much compared to other refieries in the world.

What is the minimum units to be purchased?