The Securities and Exchange Commission (SEC) has ordered an immediate halt to all marketing and promotional activities relating to a purported initial public offering (IPO) by Dangote Petroleum Refinery & Petrochemicals FZE, warning that no such offer has been filed with or approved by the regulator.
In a public notice issued on Tuesday, the Commission said it had become aware of advertisements, flyers, digital banners and targeted emails being circulated across social media platforms and investment channels promoting a supposed public offering by the refinery.
The SEC said its investigation revealed that some Registered Capital Market Operators (CMOs) were actively soliciting advance subscriptions from investors for an offering that had not been presented to the Commission for approval.
According to the regulator, “No application for the registration of an IPO or public offer of shares of the Refinery has been filed with or approved by the Commission.”
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The Commission expressed concern that the ongoing promotional campaign could mislead investors and undermine confidence in the capital market.
It stated that the activities were “capable of misleading investors, distorting market expectations, creating information asymmetry and generally undermining the integrity of the capital market.”
The SEC further described invitations to investors to “create accounts”, “pre-fund,” or “secure guaranteed allocations” as market manipulation and a “serious violation of the Investments and Securities Act.”
Consequently, the regulator directed all Registered Capital Market Operators, particularly stockbrokers and digital platform promoters, to immediately stop publishing or distributing any materials linked to the purported offering.
The Commission ordered operators to “cease with immediate effect from publishing, reposting, or distributing any promotional material, flyer, or commentary relating to the acquisition or allocation of shares in the Refinery.”
It also instructed operators to “remove or take down all such unauthorised marketing materials from websites, social media handles (including X, LinkedIn, Instagram, Facebook, etc.), and messaging groups within twenty-four (24) hours of this notice.”
In addition, the SEC directed operators to stop accepting deposits, commitments, account openings, or expressions of interest from investors in connection with the alleged IPO.
The regulator also ordered them to “reverse and refund all funds already collected in connection with this purported offering to clients within twenty-four (24) hours of this notice.”
The Commission warned that any operator that fails to comply would face sanctions under the Investments and Securities Act, 2025, and the SEC Rules and Regulations.
It advised investors to exercise caution and rely only on information released through official regulatory channels.
According to the SEC, members of the public should “rely only on formal, official pronouncements issued directly by the Commission through its official channels.”It further warned that “all such high-pressure marketing tactics, or transfer of funds to any operator for ‘pre-IPO’ placement should be ignored as they did not receive the Commission’s approval.”
The Commission added that if it eventually receives and approves an application for a public offering by Dangote Petroleum Refinery & Petrochemicals FZE, an approved prospectus would be made available to investors in accordance with the provisions of the Investments and Securities Act, 2025.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X