Before putting money into the Dangote IPO offer, how can we examine EPS, P/E ratio, debt, cash flow, profitability, dividend prospects, valuation compared with comparable companies, use of IPO proceeds, and the risks disclosure?
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Before putting money into the Dangote IPO offer, how can we examine EPS, P/E ratio, debt, cash flow, profitability, dividend prospects, valuation compared with comparable companies, use of IPO proceeds, and the risks disclosure?
Just like they stated it would be used to expand company production and manufacturing. Like the amount of crude refined a day would be doubled and transportation and distribution of products
Just like they stated it would be used to expand company production and manufacturing.
Like the amount of crude refined a day would be doubled and transportation and distribution of products
See lessThe prospectus says the proceeds will be used partly to fund the refinery's expansion plans. � Vetiva The broader expansion plan is significant: Dangote intends to increase refining capacity to about 1.4 million barrels per day, alongside additional infrastructure and petrochemical expansion. ReuterRead more
The prospectus says the proceeds will be used partly to fund the refinery’s expansion plans. �
Vetiva
The broader expansion plan is significant: Dangote intends to increase refining capacity to about 1.4 million barrels per day, alongside additional infrastructure and petrochemical expansion. Reuters reports the expansion plan…..
So I’d specifically examine:
See lessCost of crude → refining margin → operating expenses → interest → tax → net profit → free cash flow.
That’s much more informative than simply looking at revenue.
And what about dividends?
Don’t buy the IPO assuming you’ll automatically receive dividends.
Dangote’s own IPO information states that dividends are not guaranteed and depend on company performance, cash requirements and the Board’s decision.
The IPO for the People
In fact, because the company plans a huge expansion, management may choose to retain substantial cash for expansion rather than distribute it…..