Dangote Extends Refinery IPO to Attract More African Investors

Dangote Petroleum Refinery and Petrochemicals has extended its initial public offering (IPO) by two weeks to give more African investors time to participate, despite receiving subscriptions reportedly worth more than three to four times its intended fundraising target.

The offer, scheduled to close today, Tuesday, October 13, will now remain open until October 27, after approval from the Securities and Exchange Commission (SEC).

Aliko Dangote, president of Dangote Group, said the extension was not driven by a need to raise more money but by the company’s ambition to broaden ownership across Africa.

“So, it is not about the amount of money. It is about the number of people who will have the opportunity to participate in this offer. That means quite a lot to us,” Dangote said during a chat with journalists at the refinery.

He said discussions with the Nairobi Stock Exchange helped the company identify a way to facilitate participation and that it was pursuing similar arrangements with other African exchanges.

“We will extend the closing date because we want more of our African brothers and sisters to participate. Following our discussions with the Nairobi Stock Exchange, we have identified what we believe is the best way to facilitate participation,” he said.

The company said the additional two weeks would support efforts to expand distribution channels and introduce unsponsored depository receipt programmes, which can help investors in other countries gain exposure to shares without having to access the Nigerian market directly.

READ ALSO:

The extension will also give prospective investors more time to open accounts, complete identity verification and meet other regulatory requirements.

David Bird, managing director and chief executive officer of Dangote Petroleum Refinery and Petrochemicals FZE, said the extension would widen access to the offer.

“We welcome the SEC’s approval of the extension, which will give more investors across Africa the opportunity to participate in the offer,” Bird said.

“From the outset, our ambition has been to enable as many people as possible to participate in the IPO and share in DPRP’s future growth. The additional time will help us extend that opportunity to more investors across Africa.”

Pinnacle Daily reports that the IPO opened on September 14 and comprises 4.1 billion ordinary shares priced at ₦525 each, with a minimum subscription of 10 shares. If fully subscribed, the offer could raise about ₦2.15 trillion to support the refinery’s expansion plans.

The shares are expected to be listed on the Nigerian Exchange Limited after the offer is completed.

Dangote previously described the offer as the “People’s IPO”, saying the company wanted members of the public to share in its growth.

“We fully share all our prosperity with the people. That’s why we call this ‘People’s IPO’. We know the journey has actually just started. It’s not only about the refinery,” he said.

The extension comes as Dangote Group pursues plans to broaden public participation in its businesses.

On September 22, Dangote said the group’s fertiliser business would be listed through an IPO in 2028.

The refinery’s latest move places greater emphasis on widening investor participation across African markets, rather than increasing the amount it initially planned to raise.