DANGOTE REFINERY SET TO RAISE N2.15TN AS IPO PRICE IS FIXED AT N525

The Dangote Petroleum Refinery and Petrochemicals FZE is set to enter Nigeria’s capital market after the Securities and Exchange Commission approved its Initial Public Offering at N525 per share. The approval clears the way for the refinery to offer 4.1 billion ordinary shares to investors, with the transaction expected to raise approximately N2.15tn if fully subscribed. The development could make the offering one of the largest capital market transactions in Nigeria and Africa.

According to the Dangote Group, the SEC approval was conveyed in a letter to the lead issuing house, Vetiva Advisory Services Limited, and signed by the Director of the Securities and Investment Services Department, Abdulkadir Abbas. The commission has also registered the refinery’s existing 120.13 billion ordinary shares. With the regulatory clearance now secured, the company can proceed with its completion board meeting and signing ceremony ahead of the public offer.

The proposed IPO is expected to provide investors with an opportunity to acquire an interest in one of Africa’s largest industrial projects while helping to deepen Nigeria’s capital market. The refinery, located in Ibeju-Lekki, Lagos, occupies about 2,635 hectares and includes an integrated refining and petrochemicals facility, a polypropylene plant, dedicated power infrastructure and extensive storage facilities. The facility has a stated refining capacity of 700,000 barrels per day, according to the company’s latest disclosure.

The fundraising is also expected to support Dangote Group’s plans to expand the refinery’s capacity significantly. Reuters reported that the company intends to increase capacity to about 1.4 million barrels per day, making the planned expansion another major phase in the development of the facility. The IPO is expected to attract substantial attention from both institutional and retail investors because of the refinery’s strategic importance to Nigeria’s petroleum industry and its growing role in refined-product supply.

The order book for the public offer is expected to open on September 14, according to reports, placing the refinery on course for a major debut on Nigeria’s capital market. At N525 per share, the offer will give investors an opportunity to participate in the ownership of the multi-billion-dollar facility, while the successful completion of the transaction could provide Dangote Refinery with significant fresh capital for its expansion ambitions.