Fidelia Soriwei, Abuja
Africa’s largest oil refinery, Dangote Petroleum Refinery and Petrochemicals FZE, has fixed N5,250 as the minimum amount required for investors to participate in its planned initial public offering (IPO), with subscriptions starting from 10 ordinary shares.
President and Group Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, disclosed this on Monday during a signing ceremony for the proposed share offering in Lagos.
Dangote said the IPO would consist of 4.1 billion ordinary shares with a nominal value of $0.000013 each and an offer price of N525 per share.
According to him, the offering is expected to raise slightly above N2 trillion, with the funds targeted at expanding the operations of the Dangote Refinery.
“In this IPO, we intend to raise just a bit more than N2 trillion, which I’m sure is too small, at an offer price of N525 naira, with a minimum subscription of only 10 shares to fund our expansion of the refinery,” he said.
He explained that the low minimum subscription threshold was deliberately designed to allow more Nigerians to invest in the refinery regardless of income level.
Dangote said the structure of the offer would enable a broad range of individuals, including drivers, cooks, domestic workers and managers, to become shareholders in the company.
He added that the investment could also serve as a long-term savings vehicle for investors seeking to build wealth through equity ownership.
Describing the exercise as “the IPO for the people,” Dangote said the offer was aimed at widening public ownership of the refinery while supporting its next phase of growth and expansion.
The planned public offering is expected to be one of the largest capital-raising exercises in Nigeria’s capital market, opening up investment opportunities in the multi-billion-dollar refinery project to retail and institutional investors.
