Nigeria's Dangote Refinery IPO Extended to October 27

en.Wedoany.com Reported - On October 12, Nigeria's Dangote Petroleum Refinery and Petrochemicals announced that, with the approval of the country's Securities and Exchange Commission, the subscription deadline for its initial public offering (IPO) has been extended from October 13 to October 27, providing more time for additional African investors to participate in the subscription. The base offering size is approximately US$1.6 billion, and if the over-allotment option is exercised, the maximum amount raised could reach approximately US$2.1 billion, intended for the expansion of the Lagos refining facility.

The IPO was launched on September 14, offering 4.1 billion ordinary shares at a subscription price of 525 naira per share, with a base offering total of approximately 2.15 trillion naira. Investors may subscribe to a minimum of 10 shares, corresponding to a subscription amount of 5,250 naira. The company had previously obtained offering approval from the Nigerian Securities and Exchange Commission and is accepting applications through designated subscription agents and electronic investment platforms.

Dangote stated that the extension of the subscription period is intended to meet investor participation needs across multiple African markets. The company plans to expand cross-border subscription channels, advance non-sponsored depositary receipt arrangements, and provide additional time for potential investors to complete securities account opening, identity verification, and related regulatory procedures. Company management stated that the subscription applications received so far exceed the originally planned fundraising size by several times.

This offering is primarily aimed at retail investors in Nigeria and other African countries, with Dangote setting a target of attracting up to 10 million retail investors. As this offering has not been registered as a public offering in countries outside Nigeria, investors in other markets must still comply with local securities regulatory requirements and participate through eligible investment channels.

The related fundraising plan involves Dangote's refining complex operating in Lagos. The facility began processing crude oil in early 2024 and currently has a publicly disclosed crude oil processing capacity of 700,000 barrels per day. The company plans to use the proceeds from the equity financing to advance capacity expansion, with a long-term goal of increasing daily processing capacity to 1.4 million barrels.