Dangote Refinery has fixed the minimum subscription for its proposed $1.6bn initial public offering at 10 ordinary shares, equivalent to ₦5,250, as the company moves to launch what is expected to be Africa’s largest-ever public equity offering.
The minimum subscription was disclosed by the President of the Dangote Group, Aliko Dangote, during the sign-off ceremony for the offer documents in Lagos on Monday.
The ceremony, attended by financial advisers and other parties involved in the pan-African offering, came days after the Securities and Exchange Commission approved the share sale.
A total of 4.1 billion ordinary shares will be offered at ₦525 per share, with the company seeking to raise about ₦2.2tn from investors.
Vetiva Advisory Services Limited is coordinating the capital raise.
The offer values the 700,000 barrels-per-day refinery at nearly $50bn, with proceeds expected to support plans to double its current capacity to 1.4 million barrels per day.
Located on a 6,180-acre site on the outskirts of Lagos, the refinery’s proposed expansion could have a major impact on the Nigerian capital market, with its eventual listing projected to increase the market capitalisation of the Nigerian Exchange by more than one-third.
The company plans to list its shares on the Nigerian Exchange later this year, while discussions are also ongoing for a cross-border listing on the Johannesburg Stock Exchange. It is further considering listings in Egypt, Kenya, Ghana and Rwanda.
The public offer follows a $2.5bn private placement completed in July, which attracted institutional investors and high-net-worth individuals and was reportedly oversubscribed by 270 per cent.
The level of interest in the private placement, including unmet demand, is expected to feed into the public offering, which has already generated significant interest among retail investors.
The Securities and Exchange Commission had in June halted marketing activities linked to the proposed IPO after reports that some retail investors, including people with little or no experience in equity investment, had begun opening trading accounts in anticipation of the offer.
Interest in the refinery has also extended beyond Nigerian retail and institutional investors. Bloomberg reported on Monday that Abu Dhabi National Oil Company had opened discussions with Dangote Refinery over a possible stake acquisition, citing people familiar with the matter.
The IPO is scheduled to open on September 14 and comes at a time Nigeria is seeking to attract more foreign portfolio investment following its return to frontier market status under FTSE Russell after almost three years in an unclassified market category.
Beyond the immediate capital raise, the offering could provide a template for other large Nigerian companies seeking to access the capital market and broaden their funding sources through public ownership.
State-owned NNPC Limited has considered an initial public offering since its transition to a limited liability company, with discussions around a possible listing resurfacing in recent years.
The Dangote Refinery, which began production in January 2024, has also rapidly expanded its footprint in international petroleum markets. In June, it overtook the United States as the largest external supplier of jet fuel to Europe and maintained the position in July.
The refinery’s IPO is therefore expected to be closely watched not only for the funds it raises, but also for its potential impact on Nigeria’s capital market, domestic investment and the country’s emerging refining industry.
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