Investors in the stocks of companies under the Dangote Group have experienced a substantial gain of over N1.2tn during the initial two trading sessions of the week. This surge in investor interest comes in response to the Dangote Petrochemical Refinery commencing production.
Listed companies under the Dangote Group, including Dangote Cement Plc, Dangote Sugar Refinery Plc, and NASCON Allied Industries Plc (currently undergoing a merger with Dangote Rice Limited), have seen a surge in their stock prices. This rise is attributed to the increased market appetite following the commencement of production by the Dangote Petrochemical Refinery, which has been a significant development for the conglomerate.
The merger involving Dangote Sugar Refinery, NASCON Allied Industries, and Dangote Rice Limited was announced in August. The scheme involves the exchange of 12 NASCON ordinary shares for 11 Dangote Sugar shares, resulting in the creation of a single entity. All three companies are part of the Dangote Industries Limited conglomerate, overseen by Africa’s wealthiest individual, Aliko Dangote.
As of Friday, Dangote Cement closed trading with a market capitalization of N5.964tn, Dangote Sugar was valued at N828.417bn, and NASCON was worth N158.966bn. By the close of trading on Tuesday, Dangote Cement’s capitalization had risen to N7.018tn, with a unit priced at N411.90. Dangote Sugar’s market capitalization increased to N988.755bn, and NASCON Allied appreciated to N189.434bn. The collective gain across these companies resulted in a total increase of N1.245tn for shareholders, with Dangote Cement leading the surge.
Both Dangote Sugar and NASCON Allied Industries experienced a 10% gain, closing at N81.40 and N71.50 per unit, respectively, at the end of trading. NASCON emerged as the most traded security in terms of value, with N2.57bn worth of its units traded.
Analysts had previously projected the listing of Dangote Refinery as a significant boost for the capital market in 2024. Aliko Dangote, in an interview with Financial Times in November, expressed plans to list the $20bn Dangote Petrochemical Refinery on the Nigerian Exchange Limited, viewing it as a crucial step forward.
Dangote, addressing the commencement of refinery production, labeled it a “game changer” and a significant achievement for the country, showcasing its capability to undertake and deliver large capital projects.
Meanwhile, billionaire businessman Femi Otedola hailed the Dangote Refinery as a catalyst for energy security in Nigeria, predicting economic transformation for the nation and generations to come.
