The Securities and Exchange Commission (SEC) has directed capital market operators to stop promoting a purported initial public offering (IPO) by Dangote Petroleum Refinery & Petrochemicals FZE.
Aliko Dangote, president of the Dangote Group, had said the
refinery’s IPO would be conducted in September as investor demand continues to
spike.
However, the SEC, in a public notice issued on Tuesday, said
it had become aware of s, flyers, digital banners, and electronic mails
circulating on social media and investment platforms regarding a proposed
public offering by the refinery.
The commission said some registered capital market operators
(CMOs) are actively soliciting advance subscriptions for the purported offer
despite the absence of regulatory approval.
“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,” the notice reads.
The SEC said the ongoing promotional activities are capable
of misleading investors, distorting market expectations and undermining the
integrity of the capital market.
“The marketing campaign and invitations to create accounts,
pre-fund, or secure guaranteed allocations amount to market manipulation and
constitute serious violations of the Investments and Securities Act,” the
commission said.
The regulator consequently directed all registered capital
market operators, particularly stockbrokers and digital investment promoters,
to immediately cease publishing, reposting or distributing promotional
materials relating to the acquisition or allocation of shares in the refinery.
“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,” the SEC said.
“Also, 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.”
The regulator also instructed operators to stop accepting
deposits, commitments, account openings or expressions of interest from
prospective investors in connection with the purported offering.
“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 further said.
The SEC warned that failure to comply with its directives
would attract sanctions under the Investments and Securities Act (ISA) 2025 and
the commission’s rules and regulations.
The regulator advised investors to rely only on official
communications issued through its approved channels and to ignore invitations
to participate in any “pre-IPO” placement linked to the refinery.
The SEC assured that if an application for a public offering
by the Dangote refinery is eventually filed and approved, an authorised
prospectus would be made available to the investing public in accordance with
the provisions of the ISA 2025.
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