Dangote Group says the Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of the Dangote Petroleum Refinery and Petrochemicals FZE, setting the price at N525 ($0.40) per share.
The refinery said the proposed sale of 4.1 billion ordinary
shares could raise about N2.15 trillion if fully subscribed.
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.”
According to the refinery, the SEC’s clearance represents
another major step in the evolution of the facility, creating investment
opportunities in the company’s industrial assets and further strengthening
Nigeria’s capital market.
“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”.
According to the statement, 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.
On August 18, the refinery said it had completed a $1
billion underwriting programme ahead of the planned IPO.
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.
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