Dangote Opens $1.6 Billion Refinery IPO, Sets Minimum Investment at N5,250

Nigerian billionaire Aliko Dangote on Monday, Sept. 7, signed documents for an initial public offering of Dangote Petroleum Refinery and Petrochemicals, seeking to raise about 2.15 trillion naira ($1.63 billion) to finance an expansion of the refinery, Prime Business Africa reports. The offer comprises 4.1 billion ordinary shares priced at 525 naira each, with a minimum subscription of 10 shares, bringing the minimum investment to 5,250 naira. READ ALSO : Dangote Refinery Sets N525 Share Price for Planned IPO Dangote said the low entry threshold was intended to allow ordinary Nigerians and other Africans to participate in ownership of the refinery. 'In this IPO, we intend to raise just a bit more than N2 trillion, which I'm sure is too small, at an offer of N525 with a minimum subscription of only 10 shares,' Dangote said at the signing ceremony in Lagos, describing it as 'the IPO for the people.' The offer is scheduled to open on Sept. 14 and close on Oct. 13. The IPO comes as Dangote pursues a $14.3 billion expansion programme that would increase the refinery's processing capacity to 1.4 million barrels per day by 2029 from about 700,000 barrels per day currently. The planned share sale would mark one of the largest public offerings in Africa and open ownership of one of Nigeria's most significant industrial assets to retail investors.