FCMB Backs Dangote Refinery IPO as N2.15tn Offer Targets Wider Ownership

• Dangote Refinery is offering 4.1 billion shares at N525 each, potentially raising N2.15tn if fully subscribed.

• The offer opened on September 14 and will close on October 13, with a minimum subscription of 10 shares.

• FCMB Group is supporting the offer through its capital markets, stockbroking, banking and distribution operations.

September 18, () – FCMB Group is backing the initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE as the refinery seeks to broaden its ownership base and attract retail, institutional and high-net-worth investors.

The refinery is offering 4.1 billion ordinary shares at N525 per share, putting the value of the offer at about N2.15tn if fully subscribed. The offer opened on September 14 and is scheduled to close on October 13.

FCMB Group is participating through three of its operating companies. FCMB Capital Markets is a joint issuing house, CSL Stockbrokers is the stockbroker to the issue, while First City Monument Bank is acting as receiving bank and distribution agent.

Speaking at the opening gong ceremony and Facts Behind the Offer presentation at the Nigerian Exchange in Lagos, Ladi Balogun, Group Chief Executive of FCMB Group, said the transaction could expand access to large-scale Nigerian businesses through the capital market.

He said the offer reflected the growing participation of different investor classes, including retail investors, high-net-worth individuals, institutional investors and international investors.

“Retail investors are buying shares on their mobile phones through fintechs, banks and brokers,” Balogun said, adding that institutional investors such as pension funds were providing depth while international investors were bringing scale.

Dangote seeks broader ownership

President of Dangote Industries, Aliko Dangote, said the IPO was intended to widen ownership of the refinery by allowing Nigerians across different income and professional groups to acquire shares.

“This is an IPO for the people,” Dangote said, noting that drivers, cooks, traders, employees and managers should have an opportunity to own a stake in the business.

With a minimum subscription of 10 shares, investors can participate with N5,250.

Investors can subscribe through FCMB branches, business offices and the FCMB Mobile App, among other available channels.

CSL Stockbrokers is available to advise retail investors on the potential merits and risks of the investment, while FCMB Capital Markets will advise high-net-worth individuals and qualified investors.

Refinery targets 1.4mbpd capacity

The Dangote refinery currently has a processing capacity of about 700,000 barrels of crude oil per day and plans to expand to approximately 1.4 million barrels per day.

Balogun said the refinery was relatively insulated from some of the macroeconomic and currency risks associated with the Nigerian economy, describing the growing number of large companies accessing the capital market as an indication of the potential for businesses to raise capital at scale.

The IPO comes as Nigeria’s capital market seeks to deepen domestic participation and provide companies with alternative sources of long-term funding.

If fully subscribed, the Dangote Refinery offer would rank among the largest equity-raising transactions in Nigeria’s capital market, while giving investors an opportunity to take direct ownership in one of the country’s largest industrial assets.