4.1b shares for sale at N525
Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has approved application for a N2.15 trillion initial public offering (IPO) by Dangote Petroleum Refinery and Petrochemicals FZE. NigeriaNews Subscription
The approval paves the way for the completion of the pre-offer processes and documentation, with Dangote Petroleum Refinery’s owner, Alhaji Aliko Dangote and his professional advisers expected to sign off final offer documents early next week.
The approval was conveyed in a letter to the Lead Issuing House, Vetiva Advisory Services Limited, signed by SEC’s Director of Securities and Investment Services Department, Abdulkadir Abbas.
The commission approved proposed IPO of 4.1 billion ordinary shares at N525 per share, indicating initial offer size of N2.15 trillion.
SEC also approved Dangote Petroleum Refinery’s existing 120.13 billion ordinary shares.
Sources close to the parties said the completion board meeting and signing ceremony would be next week, ending the pre-offer processes and allowing the IPO to open for public subscription before the end of this month.
The Refinery confirmed the development in a statement yesterday.
It also confirmed in a statement that the regulatory approval cleared the refinery’s draft offer documents and authorized the company to proceed with its Completion Board Meeting and Signing Ceremony, marking a significant milestone in the IPO process.
Stakeholders in the oil sector agreed that the SEC clearance represents another major step in the evolution of Dangote Petroleum Refinery, opening investment opportunities in one of Africa’s most strategic industrial assets and further strengthening Nigeria’s capital market. NigeriaNews Subscription
Located in Ibeju-Lekki, Lagos, Dangote Refinery and Petrochemicals currently has a refining capacity of 700,000 barrels per day, making it the largest single-train refinery in the world, alongside a 900,000 tonnes per annum polypropylene plant.
The company has recently launched expansion programme, which is expected to double its capacity to 1.4 million barrels per day, positioning it to become the world’s largest refinery.
Alhaji Aliko Dangote had told investors and analysts in Botswana that the IPO could open within the next 10 to 12 days.
He said the IPO is expected to raise about $5 billion, potentially making it the largest public offering in Africa.
