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…
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