Dangote Refinery Launches N2.2trn IPO, Targets 10m Investors

Dangote Petroleum Refinery and Petrochemicals Limited has formally commenced the process of launching its Initial Public Offering (IPO), offering 4.1 billion ordinary shares to investors. The public offer marks a major step towards broadening ownership of Africa's largest single-train refinery, with the company targeting up to 10 million subscribers. The process was formally kicked off on Monday at a signing ceremony in Lagos, where President and Chief Executive of Dangote Group, Aliko Dangote, unveiled the public offering alongside transaction advisers and other key stakeholders involved in the share sale. The IPO is expected to raise approximately N2.2 trillion, making it one of the most ambitious capital-raising exercises undertaken by a private enterprise in Africa. Addressing bank chief executives, captains of industry and financial services advisers at the event, Dangote said the minimum subscription had been set at 10 ordinary shares, representing an entry investment of N5,250. You May Like:Dangote Refinery Secures $1bn Backing Ahead of Planned IPO He said the structure of the offer was designed to encourage broad-based participation by both retail and institutional investors while deepening public ownership of the refinery. According to him, the share offer was not solely about raising capital but also about giving Nigerians from different walks of life an opportunity to become part owners of the refinery. 'This IPO is not only about raising capital; it is about democratising wealth creation, broadening participation in Africa's industrial future and giving millions of investors the opportunity to own a stake in a world-class enterprise. It's a legacy we are laying down; nobody will live forever,' Dangote said. Meanwhile, Group Managing Director of Vetiva Advisory Services Limited, the Lead Issuing House and coordinator of the transaction, Chuka Eseka, said the launch followed the recent approval granted by the Securities and Exchange Commission (SEC). He said the approval paved the way for the offering of 4.1 billion ordinary shares at N525 per share. The public offer places a valuation of close to $50 billion on Dangote Petroleum Refinery and Petrochemicals and is expected to provide capital for the expansion of the refinery's production capacity from 700,000 barrels per day to 1.4 million barrels per day. Recall that in July, the company raised $2.5 billion through a private placement targeted at institutional investors and high-net-worth individuals, with demand exceeding the offer size by 270 per cent. Market observers believe that substantial unmet demand from the private placement could spill over into the public offering. The public offer is scheduled to open on September 14.