Dangote Petroleum Refinery and Petrochemicals FZE has opened its ₦2.15 trillion initial public offering, launching what is set to be Africa’s largest public share sale and giving retail and institutional investors an opportunity to acquire a stake in the Nigerian oil refinery.
The offer comprises 4.1 billion ordinary shares at ₦525 each, with gross proceeds of up to ₦2.1525 trillion, or about $1.6 billion. The subscription period opened on September 14 and will run until October 13, ahead of a planned listing on the Main Board of Nigerian Exchange Limited in November.
The opening moves the transaction from the deal preparation and signing stage into public subscription. Aliko Dangote formally launched the offer at the Nigerian Exchange in Lagos, marking the commencement of investor participation in the refinery.
Investors can subscribe for a minimum of 10 shares, representing an initial investment of ₦5,250, with additional subscriptions in multiples of 10 shares. The structure is designed to widen participation beyond institutional investors, with the company also offering eligible retail investors up to two additional shares at no extra cost, subject to the applicable holding requirements and approvals.
At full subscription, the offer will raise ₦2.1525 trillion. Dangote Refinery estimates costs and expenses of the offer at ₦41.49 billion, or 1.93% of gross proceeds, leaving estimated net proceeds of ₦2.111 trillion for growth capital expenditure connected with its refinery expansion programme.
The public offering follows a $2.5 billion private placement completed earlier this year, which brought institutional investors into the refinery's shareholder base. The IPO represents the next stage in the company's move towards broader ownership while Dangote-linked interests remain the controlling shareholders.
The transaction comes as Dangote Refinery pursues plans to expand its crude processing capacity from about 700,000 barrels per day to 1.4 million barrels per day, with the company positioning the public offering as part of its wider expansion and capital-raising strategy.
Vetiva Advisory Services is leading the transaction, with Stanbic IBTC Capital and FirstCap also serving as Joint Issuing Houses. Banwo & Ighodalo is acting as Solicitor to the Issuer, while AELEX and Olaniwun Ajayi are Solicitors to the Offer. Deloitte is Auditor, KPMG is Reporting Accountant and Buraq Capital Limited is Shari'ah Adviser.
The opening now begins the market test for a transaction that will set a new scale benchmark for Nigeria's equity capital markets. If completed as planned, Dangote Refinery will list on the NGX in November, bringing one of Africa's largest industrial assets into the public market.
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