South Africa Eyes Dangote Refinery Listing Despite Anti-Immigration Policies Affecting Nigerians
- The Johannesburg Stock Exchange (JSE) wants Dangote Petroleum Refinery to obtain a secondary listing after its planned $5 billion IPO on the Nigerian
- The refinery aims to raise fresh funds to expand its Lagos operations, having already become a major exporter of refined petroleum products
- The move comes despite recent tensions over South Africa's stricter immigration policies, which have contributed to exit of some Nigerian-owned businesses
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Johannesburg Stock Exchange (JSE) is seeking to secure a secondary listing for Dangote Petroleum Refinery after the company completes its highly anticipated Initial Public Offering (IPO) on the Nigerian Exchange (NGX), in a move that underscores the refinery's growing influence across Africa.
The South African exchange sees the Lagos-based refinery as one of the continent's most attractive corporate listings and hopes to add it to a pipeline of major companies expected to raise capital in the second half of the year.
Source: UGC
The move comes as competition intensifies among African stock exchanges to attract high-value companies and deepen cross-border investment opportunities.
JSE targets Dangote after Nigeria listing
Speaking in an interview with CNBC Africa, JSE Chief Executive Officer Valdene Reddy disclosed that Dangote Refinery is expected to list in Nigeria first before pursuing a secondary listing in Johannesburg.
According to her, the refinery represents the kind of high-profile African company the exchange is eager to attract because of its scale, strong investor appeal and continental footprint.,
Reddy said:
"They will go and list in Nigeria first but with a strong intent to hopefully bring that listing to South Africa shortly thereafter on the JSE. It would be a great opportunity for diversified play of high demand but of such a strong African corporate listing on the JSE."
She added that the JSE's pipeline also includes companies operating in mining, financial technology, real estate and construction.
IPO expected to break African records
Dangote Refinery's planned IPO, estimated at about $5 billion, is widely projected to become the largest public offering ever undertaken on the African continent.
The listing has already generated significant interest from investors and stock exchanges across Africa, with bourses in Kenya, Egypt, Ghana and Rwanda reportedly monitoring the transaction in the hope of securing future cross-listings.
A private share placement linked to the IPO was also said to have attracted overwhelming investor demand.
The refinery is seeking fresh capital to finance the expansion of its Lagos facility, increase refining capacity to about 1.4 million barrels per day, and accelerate its wider African growth strategy.
Source: Facebook
South Africa courts Nigerian investment despite business tensions
The JSE's interest in Dangote Refinery comes against the backdrop of strained commercial relations between South Africa and Nigerian businesses in recent months.
South Africa has faced criticism over the implementation of tougher immigration measures and stricter enforcement actions that have affected foreign-owned businesses, including enterprises operated by Nigerians.
Against that backdrop, the JSE's pursuit of Africa's largest refinery highlights the country's determination to attract major investments and strengthen its capital markets despite broader concerns raised by some foreign investors.
The move could also improve liquidity for investors and further cement Dangote Refinery's position as one of Africa's most valuable industrial assets.
Source: Legit.ng
