Dangote Refinery IPO Attracts Over N10bn Within First Hour

• Investors subscribed to more than N10 billion worth of Dangote Refinery shares shortly after the N2.15 trillion IPO opened on Monday, according to NGX chairman Umaru Kwairanga.

• The offer targets $1.6 billion from investors across Africa and seeks to attract up to 10 million shareholders before closing on October 13.

• Proceeds will support the planned expansion of the refinery’s capacity from 700,000 barrels per day to 1.4 million barrels by 2030.

September 14, () – Dangote Refinery’s N2.15 trillion Initial Public Offering (IPO) attracted more than N10 billion in subscriptions within minutes of opening on Monday, signalling strong early investor interest in what is billed as Africa’s largest initial public share offering.

Umaru Kwairanga, chairman of the Nigerian Exchange Group, disclosed the early subscription figure at the Facts Behind the Figures ceremony held at the Nigerian Exchange (NGX) in Lagos.

“From eight o’clock today, we are talking of over 10 billion and above that have already joined,” Kwairanga said.

His disclosure corroborated comments by Aigboje Aig-Imoukhuede, chairman of Access Holdings, who said billions of naira had already been subscribed by thousands of investors within minutes or less than an hour of the offer opening.

“With this particular, sterling, historic offer and what I have seen in the data room, where already billions of naira have been subscribed by thousands of investors within minutes or under an hour, you are a blessing to humanity,” Aig-Imoukhuede said.

The IPO opened at 8:00 am on Monday and will run until October 13, with the company targeting retail, institutional and eligible African investors.

$1.6bn target, 10m shareholders

Dangote Refinery is seeking to raise about $1.6 billion through the offer, with the company targeting up to 10 million shareholders across Africa.

The offer comprises 4.1 billion new ordinary shares priced at N525 each, with a minimum subscription of 10 shares costing N5,250.

The transaction values the refinery at about $49 billion and is expected to become one of the most significant transactions in the history of Nigeria’s capital market.

The company plans to use the proceeds to support its expansion programme and other strategic investments.

Capacity expansion to 1.4mbpd

The refinery currently has a nameplate capacity of 700,000 barrels per day, with plans to double this to 1.4 million barrels per day by 2030.

The expansion is expected to strengthen the refinery’s ability to supply refined petroleum products to Nigeria and international markets while increasing its role in the regional energy industry.

The expected listing could also have a substantial impact on the size of Nigeria’s equities market. With NGX market capitalisation standing at about N157.6 trillion at Monday’s market open, the refinery’s valuation could significantly increase the exchange’s overall market value once the company is listed.

Africa’s richest man and founder of the Dangote Group, Aliko Dangote, formally opened the market and the Facts Behind the Figures ceremony at about 9:35 am in Lagos.

The event was attended by senior executives from Dangote Refinery and NGX, alongside financial sector leaders and representatives of African capital markets.

Among those present were David Bird, chief executive officer of Dangote Refinery; Edwin Devakumar, vice president, Oil & Gas and Fertiliser at Dangote Group; Frank Nwiti, chief executive officer of the Nairobi Stock Exchange; Neo Mooki, chairperson of the Botswana Stock Exchange; and Jim Ovia, founder and chairman of Zenith Bank.

The early subscription comes as investors assess the opportunity to own part of one of Africa’s largest industrial projects and benefit from its planned expansion and growing role in regional petroleum supply.