Dangote Refinery Launches N2.15trn IPO, Targets 10m Retail Investors

Dangote Refinery Launches N2.15trn IPO, Targets 10m Retail Investors

Dangote Petroleum Refinery and Petrochemicals is targeting 10 million retail investors for its N2.15 trillion Initial Public Offering. Transaction advisers say this would be about 20 times Nigeria’s current retail participation record.

The offer comprises 4.1 billion ordinary shares at N525 per share. It will open on September 14 and close on October 14, ahead of a planned listing on the main board of the Nigerian Exchange in November.

The disclosure was made on Monday in Lagos at the signing ceremony for the IPO. Advisers said the offer was structured to enable mass participation by retail investors.

With a minimum subscription of 10 shares, investors can participate with N5,250, giving low-income earners the opportunity to become shareholders.

Managing Director of Vetiva Capital Management, Chuka Eseka, said the distribution would be driven electronically through banks, fintech platforms, stockbrokers and other intermediaries.

“This will be the first offer in Nigeria that will be made to persons who truly have to subscribe digitally,” Eseka said.

He added that the 10 million target is a significant jump from the current retail record of 131,000 investors.

President of Dangote Group, Aliko Dangote, said raising money was not the primary objective.

“So it’s not really about raising money. If we want to raise money, we know how to raise. That’s why we have a limit,” he said.

Dangote said the goal is to widen ownership of the refinery beyond institutions and bring ordinary Nigerians, workers, drivers, and small business owners into the ownership structure.

“We are targeting 10 million shareholders from all over Africa and maybe other parts of the world,” he said.

The offer also includes a…