Economy

The Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise on Monday, September 14, opened its initial public offering (IPO) to prospective investors. The IPO is expected to be one of the biggest public offers on the Nigerian Exchange Limited (NGX). It is offering 4.1 billion new ordinary shares at ₦525 each, and could raise about ₦2.15 trillion, allowing Nigerians and other eligible investors to own part of the $49 billion refinery. But before putting money into the offer, investors need to understand how the subscription works, what happens after they apply and the risks involved, Pinnacle Daily explains in this report. The minimum investment is ₦5,250 At an indicative price of ₦525 per share, investors can apply for a minimum of 10 shares, meaning they need at least ₦5,250. The process is designed to make participation easy and fully digital, said Chapel Hill Denham’s Managing Director, Investment Banking, Lanre Buluro. According to him, investors with a Bank Verification Number (BVN), a mobile phone or laptop and a bank account can complete the subscription within two to three minutes. You do not need to wait for opening day Investors do not gain an advantage by subscribing on the first day of the offer, a season, stockbroker, C.S.U. Anyanwu said, explaining that applications are collated before the allotment process takes place. “You have no advantage over somebody who brought his own on the 12th,” he said. Therefore, investors should not rush into the offer simply because it has opened. You may not …