Dangote Refinery Valued 33.4% Over IPO Price
Renaissance Capital Africa raised its Dangote refinery valuation to ₦700.41 a share, 33.4% above the IPO price, as the offer closes on 27 October. The post Dangote Refinery Valued 33.4% Over IPO Price appeared first on The Rio Times .
Renaissance Capital Africa has revised its valuation of the Dangote refinery to ₦700.41 per share, reflecting a 33.4% increase over the IPO price of ₦525 per share. The current valuation surpasses the company's actual first nine-month performance, which included revenue of about US$22.5 billion, EBITDA of US$5.5 billion, and net profit of US$4.73 billion.
This positive outlook is attributed to stronger refining margins and improved operational efficiency. The refinery, owned primarily by Nigerian billionaire Aliko Dangote, attracted subscriptions from over 90 countries, including 51 in Africa. The IPO offering consists of 4.1 billion shares, with subscriptions beginning on September 14 and a closing date of October 27.
Renaissance Capital Africa's model assumes the completion of a second processing line, which could raise the per-share value to ₦731.80 if completed in 2029, or decrease it to ₦671.83 if delayed to 2031. The valuation is based on a discounted cash flow estimate and assumes potential currency fluctuations due to the naira's volatility against the dollar.
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