Nigeria: Breaking - Dangote Refinery Sets Minimum Subscription for $1.6 Billion IPO

What the report says

Dangote Refinery has finished signing off on the documents for its planned initial public offering, moving the company closer to launching what Premium Times described as a $1.6 billion share sale. The announcement was made in Lagos on Monday, with Aliko Dangote, founder of the refinery and Africa’s richest man, attending the ceremony alongside advisers and other participants.

According to the report, the offer is expected to open next week and will involve 4.1 billion shares priced at N525 each. The minimum purchase was set at 10 ordinary shares, or N5,250. Lagos-based Vetiva Advisory Services Limited is coordinating the capital raise, and the company previously received approval from Nigeria’s Securities and Exchange Commission.

The refinery plans to use the proceeds to expand capacity from 700,000 barrels per day toward 1.4 million barrels per day. The proposed listing is being described as potentially the largest public equity sale in Africa, and the company has also been considering future cross-border listings, including in Johannesburg and possibly other African markets.

The report also noted that investor interest has been strong, following an earlier private placement and reported talks with potential strategic investors. More broadly, a successful listing could be significant for Nigeria’s capital market and may serve as a model for other large domestic companies considering public offerings.