SEC has approved Dangote Refinery’s ₦2.15tn IPO at ₦525 per share.
NewsOnline Nigeria reports that the Securities and Exchange Commission (SEC) has approved the initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE, clearing the company to offer 4.1 billion ordinary shares at ₦525 each.
The offer could raise approximately ₦2.15 trillion if fully subscribed, potentially making it one of the largest capital-market transactions in Nigeria and Africa.
Dangote Group disclosed that the approval was communicated to the lead issuing house, Vetiva Advisory Services Limited, in a letter signed by Abdulkadir Abbas, director of the SEC’s Securities and Investment Services Department.
According to the company, the commission also registered the refinery’s existing 120.13 billion ordinary shares and approved its draft offer documents.
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The regulatory clearance authorises the company to proceed with its Completion Board Meeting and Signing Ceremony, representing a significant step towards opening the offer to investors.
Aliko Dangote, president and chief executive officer of Dangote Group, said on Thursday that the public offer would open within 10 to 12 days. Reuters reported that the listing is expected to attract significant participation from Nigerian and African investors.
The company said the IPO would broaden investor participation in one of Nigeria’s biggest industrial assets while strengthening the country’s capital market.
Located in Ibeju-Lekki, Lagos, the Dangote Refinery and Petrochemicals Complex occupies approximately 2,635 hectares.
The integrated facility currently has a refining capacity of 700,000 barrels per day, making it the world’s largest single-train refinery. It also comprises a polypropylene plant capable of producing 900,000 tonnes annually and a dedicated 435-megawatt power plant.
At full production, the refinery is designed to meet Nigeria’s demand for refined petroleum products while producing substantial volumes for export.
The company is also undertaking an expansion expected to increase the refinery’s capacity to 1.4 million barrels per day. Nigeria’s petroleum-product exports have already increased significantly following the refinery’s commencement of operations, according to the US Energy Information Administration.
In August, the company announced a $1 billion underwriting programme ahead of the planned IPO. The arrangement reportedly comprised a completed $600 million private placement and a further $400 million commitment towards the public offer. Reuters reported that the programme attracted interest from institutional investors, including sovereign wealth funds.
With the SEC approval now secured, Dangote Refinery is expected to announce further details about the offer period, subscription process and proposed listing on the Nigerian Exchange.
