Dangote Group has announced that it has secured approval from the Securities and Exchange Commission (SEC) for the initial public offering (IPO) of the Dangote Petroleum Refinery and Petrochemicals FZE. The price for the IPO has been set at N525.00 (US$0.40) per share.
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If fully subscribed, the refinery will be raising about N2.15 trillion from the proposed sale of 4.1 billion ordinary shares. In a statement quoted by The Cable, Dangote refinery said the offer could become one of the largest capital market transactions in Nigeria’s history.
“The approval was conveyed in a letter to the Lead Issuing House, Vetiva Advisory Services Limited, and signed by Abdulkadir Abbas, director of the securities and investment services department of the SEC,” the statement reads.
“According to the Commission, the proposed offering comprises 4.1 billion ordinary shares at ₦525 per share, with the potential to raise approximately ₦2.15 trillion if fully subscribed. In addition, the SEC has registered the company’s existing 120.13 billion ordinary shares.
“The regulatory approval clears the refinery’s draft offer documents and authorises the company to proceed with its Completion Board Meeting and Signing Ceremony, marking a significant milestone in the IPO process.”
“Located in Ibeju-Lekki, Lagos, the Dangote Refinery and Petrochemicals Complex occupies approximately 2,635 hectares and is home to a world-class integrated refining and petrochemicals facility,” the statement further reads.
“The complex currently has a refining capacity of 700,000 barrels per day, making the facility the largest single-train refinery in the world, alongside a 900,000 tonnes per annum polypropylene plant. The facility is powered by a dedicated 435-megawatt power plant.
“At full production, the refinery is designed to satisfy Nigeria’s domestic demand for refined petroleum products while generating substantial volumes for export markets.”
The refinery said the facility is also undergoing expansion that is expected to increase capacity to 1.4 million barrels per day, “positioning it to become the world’s largest refinery”.
Th Cable went further to report that on Thursday, Aliko Dangote, chief executive officer (CEO) of the Dangote Group, said the initial public offering (IPO) of the refinery will open in the next 10 to 12 days.
With SEC approval secured, the refinery is set to proceed with a public offering that could significantly broaden investor participation in one of Nigeria’s major industrial ventures.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
