Dangote Refinery unveils N2.15trn IPO at N525 per share
Dangote Petroleum Refinery and Petrochemicals FZE announced on Monday the launch of a ₦2.15 trillion Initial Public Offer (IPO), providing Nigerians and other Africans the opportunity to purchase shares in its 700,000-barrel-per-day refinery.
The IPO includes 4.1 billion ordinary shares priced at ₦525 each, with a minimum subscription of 10 shares, amounting to ₦5,250.
Alhaji Aliko Dangote, Chief Executive of the company, stated that the offer aims to secure funding for the refinery’s expansion while enhancing public ownership of the enterprise. “This is the IPO for the people. There is no segregation on who can own the shares,” he commented.
Dangote indicated plans to double the refinery’s capacity to 1.4 million barrels per day, expressing confidence that the expansion would elevate production levels and improve service capabilities for both domestic and international markets. He characterized the IPO as the largest of its kind in Africa and the first public offering for the refinery since its inauguration in 2023.
“This transaction opens up more opportunities for Nigerians and other Africans to participate in our growth,” Dangote added.
Mr. Chuka Eseka, Group Managing Director of Vetiva Capital Management Ltd., noted that the transaction is set up to ensure transparency and accountability while encouraging a wide range of investors to participate. Retail investors can subscribe electronically through various platforms, including bank applications and stockbrokers, while institutional investors can subscribe either electronically or through application forms submitted to designated agents.
FirstCap Managing Director Mr. Ukandu Ukandu stated that the offer is aimed at attracting approximately 10 million retail investors, significantly surpassing the current record of approximately 181,000 retail participants in a single transaction within the Nigerian capital market.
Mr. David Bird, Chief Executive Officer of Dangote Petroleum and Petrochemicals, highlighted the refinery’s strategic position in the Lekki Free Zone, which allows it to cater to Nigeria, West Africa, and international markets. “This is not just a refinery or petrochemical complex. This is truly a pan-African energy platform,” Bird remarked.
Oladele Sotubo, Chief Executive Officer of Stanbic IBTC Capital, emphasized that the offer is designed to enable ordinary Nigerians to acquire shares in the refinery.
According to the News Agency of Nigeria (NAN), the IPO, which has received approval from the Securities and Exchange Commission (SEC), is scheduled to open on September 14 and close on October 13, pending any regulatory approvals and stipulations outlined in the offer documents.
Vetiva Advisory Services Ltd. serves as the Lead Issuing House and Lead Adviser, with Stanbic IBTC Capital and FirstCap acting as Joint Managers. The company plans to list the shares on the Main Board of the Nigerian Exchange Group.
Eligible retail investors may receive up to two additional shares through the offer’s incentive structure, subject to specified conditions.
