Lagos: Dangote Petroleum Refinery and Petrochemicals FZE has launched a monumental N2.15 trillion Initial Public Offer (IPO) aimed at raising capital for expansion and broadening public ownership of the company. This move marks a significant milestone for the company as it opens its doors to Nigerian and African investors seeking to acquire shares in the 700,000-barrel-per-day refinery.
According to News Agency of Nigeria, the IPO, unveiled on Monday, comprises 4.1 billion ordinary shares priced at N525 per share, with a minimum subscription requirement of 10 shares valued at N5,250. Alhaji Aliko Dangote, the Chief Executive of the company, emphasized that the offer is inclusive, allowing all interested parties to own a part of the company. He further revealed the company’s plans to double the refinery’s capacity from 700,000 barrels per day to 1.4 million barrels per day, a strategic expansion aimed at increasing production to cater to both domestic and international markets.
Dangote highlighted that the IPO is the refinery’s first public offer since its inauguration in 2023 and is poised to be the largest in Africa. He stated that the move is designed to provide more people the opportunity to partake in the company’s growth, while also generating additional capital for the planned expansion.
Chuka Eseka, Group Managing Director of Vetiva Capital Management Ltd., assured that the transaction structure promotes transparency, accountability, and broad participation. Retail investors will have the convenience of subscribing electronically through various platforms, while institutional investors can choose between electronic subscriptions or application forms.
FirstCap Managing Director, Mr. Ukandu Ukandu, pointed out that the offer targets about 10 million retail investors, a significant leap from the Nigerian capital market’s previous record of approximately 181,000 retail participants in a single transaction. David Bird, Chief Executive Officer of Dangote Petroleum and Petrochemicals, remarked on the refinery’s strategic location, which positions it to serve markets in Nigeria, West Africa, and beyond, describing it as a “truly pan-African energy platform.”
Oladele Sotubo, CEO of Stanbic IBTC Capital, reiterated that the offer is structured to enable ordinary Nigerians to acquire shares in the refinery. The offer, already approved by the Securities and Exchange Commission, is set to open on September 14 and close on October 13, contingent on regulatory approvals and the conditions in the offer documents.
Vetiva Advisory Services Ltd. leads the initiative as the Lead Issuing House and Adviser, with Stanbic IBTC Capital and FirstCap as Joint Managers. The company intends to list the shares on the Main Board of the Nigerian Exchange Group, with eligible retail investors potentially receiving up to two additional shares under the offer’s incentive structure, subject to applicable conditions.