The Nigerian Exchange Group (NGX Group) says the anticipated Initial Public Offering (IPO) of Dangote Refinery and Petrochemicals is being positioned as an African investment opportunity, as analysts link last week’s stock market sell-off partly to investor preparations for the expected offer.
Chairman of NGX Group, Umaru Kwairanga, disclosed this at the London Africa Summit on Friday, where discussions focused on strengthening business and investment ties between Africa and global markets.
In a statement issued on Saturday, Kwairanga said NGX had engaged stock exchanges across the continent to broaden participation in the planned listing and deepen regional capital market integration.
“We want to consider the Dangote Refinery offer as an African offer and not a Nigerian offer.
“That is why we invited stock exchanges from across the continent to Lagos and took them to the refinery to see what has been built,” he said.
According to him, representatives from Kenya, Ghana, South Africa and other African countries visited the refinery to assess its operations and investment potential.
Kwairanga said investors increasingly seek evidence of performance and growth prospects before committing capital.
“Investors are not looking for stories. Investors are looking for evidence, prospects and projections, and that is what we are bringing from Africa,” he said.
He described Africa as one of the world’s most attractive investment destinations, citing its youthful population and growing economic opportunities.
The NGX chairman also highlighted the longstanding relationship between Nigeria’s capital market and the London Stock Exchange, saying the partnership had helped attract global capital to Nigeria.
According to him, NGX has invested heavily in technology and market infrastructure to improve capital raising and market efficiency.
He said more than N4 trillion raised during recent bank recapitalisation exercises was facilitated through the exchange’s technology platforms.
Kwairanga added that NGX had conducted investment roadshows in the United States, Brazil, China and the United Kingdom to showcase opportunities in Nigeria and boost investor confidence.
He said recent reforms, including migration to a T+1 settlement cycle and extended trading hours, were aimed at aligning the market with global standards.
Meanwhile, Vice-President of Highcap Securities Ltd., David Adonri, said the N4.92 trillion loss recorded on the Nigerian stock market last week reflected investor repositioning ahead of the anticipated Dangote Refinery IPO.
The Nigerian Exchange Ltd. (NGX) All-Share Index and market capitalisation declined by 3.11 per cent and 3.06 per cent respectively during the week.
The All-Share Index closed at 242,593.31 points, while market capitalisation fell to N155.59 trillion from N160.51 trillion, resulting in a loss of N4.92 trillion.
Adonri said the market sell-off suggested many investors were raising liquidity in anticipation of the expected offer.
“The sharp sell-off indicated that many investors were raising liquidity in anticipation of the expected IPO,” he said.
He, however, noted that other factors also contributed to the bearish performance.
According to him, the market is undergoing a seasonal correction that typically follows the earnings season as investors reassess company valuations after the release of audited financial results.
“There has been a seasonal trend for market correction after the earnings season. Prices usually decline to align with the fundamental values of companies,” he said.
Adonri also cited growing political activity ahead of the 2027 general elections as a factor affecting investor sentiment, noting that some investors often increase cash holdings during periods of heightened political uncertainty.
He added that some capital market operators may have sold financial assets to strengthen their capital positions in response to new minimum capital requirements introduced by the Securities and Exchange Commission (SEC).
Despite the decline, Adonri expressed optimism that the market could recover after rebounding on Friday.
Trading activity remained strong during the week, with investors exchanging 3.97 billion shares worth N175.66 billion in 343,587 deals, compared with 2.40 billion shares valued at N111.48 billion in the previous week.
The Financial Services Industry led trading activity with 2.69 billion shares worth N69.98 billion, accounting for 67.83 per cent of total volume traded, while Access Holdings Plc, Abbey Mortgage Bank Plc and Sterling Financial Holdings Company Plc dominated market activity.