Managing Director and Chief Executive Officer of Ava Capital PLC, Kayode Fadahunsi, has said the proposed listing of Dangote Refinery could account for about 30 percent of the Nigerian Exchange’s (NGX) market capitalisation.
Speaking during an interview with ARISE News on Thursday, Fadahunsi said the refinery’s valuation of about ₦65 trillion would make it one of the largest companies on the exchange if listed.
He said Dangote Refinery could represent about 30 percent of the total market capitalisation of companies listed on the NGX, highlighting the scale of the proposed transaction.
“One company is going to account for 30 percent of the NGX market capitalisation by the time we’ve finished this,”
Fadahunsi said the proposed listing, which he expects to take place around November, would be significantly larger than the market capitalisation of several major companies currently listed on the exchange.
“The proposed listing, which I expect to take place around November, would be significantly larger than the market capitalisation of several major companies currently listed on the exchange.”
He identified Airtel as the highest-capitalised company on the exchange, with a market value of “23 point something trillion,” followed by Dangote Cement, MTN, BUA Foods and BUA Cement.
“When you add it, it’s not up to $65 trillion. So bringing $65 trillion in one transaction is absolutely beautiful, in my opinion,”
Fadahunsi said the scale of the proposed transaction makes it a significant development for Nigeria’s capital market and urged stakeholders to support the listing.
“People say, we should all welcome this. Honestly, we should all welcome it. We should all work to make this a success,”
He added that the listing could have a substantial impact on the NGX and encourage more major companies to seek listings on the exchange.
“NGX itself is listed on the NGX. And stock has been doing pretty well recently. It has to do pretty well because 30% in terms of market size, its market is growing by 30%. The impact is linear on them,”
Fadahunsi said he expects the Dangote Refinery listing to be followed by more major listings on the Nigerian Exchange.
“This listing that you see, you are going to see many more. That’s my focus,”
Goodness Anunobi
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