The doors are opening for investors to own a piece of Nigeria’s biggest industrial project as the Dangote Petroleum Refinery secures regulatory approval for its massive N2.15 trillion Initial Public Offering (IPO).
The Securities and Exchange Commission (SEC), Nigeria’s capital market regulator, has approved the refinery’s proposed offer of 4.1 billion ordinary shares at N525 per share, putting the initial value of the IPO at about N2.15 trillion.
The approval marks a major breakthrough for the share sale and clears the way for the refinery to complete its final pre-offer processes.
SEC also approved the refinery’s existing 120.13 billion ordinary shares, according to a letter sent to Vetiva Advisory Services Limited, the Lead Issuing House.
The letter was signed by the SEC’s Director of Securities and Investment Services Department, Abdulkadir Abbas.
With the regulatory hurdle cleared, the Completion Board Meeting and Signing Ceremony are expected to hold next week, according to sources familiar with the transaction.
The development is expected to bring the pre-offer stage to a close and pave the way for the IPO to open for public subscription before the end of September.
Dangote Petroleum Refinery confirmed the SEC approval in a statement, saying the clearance covered its draft offer documents and authorised the company to proceed with the Completion Board Meeting and Signing Ceremony.
The mega IPO is expected to generate significant interest among investors, offering Nigerians and other investors an opportunity to take a stake in one of Africa’s most strategic industrial assets.
The refinery, located in Ibeju-Lekki, Lagos, currently has a refining capacity of 700,000 barrels per day, making it the world’s largest single-train refinery.
It also operates a polypropylene plant with a production capacity of 900,000 tonnes per annum.
The company is already working on an expansion programme expected to double its refining capacity to 1.4 million barrels per day, potentially making the facility the world’s largest refinery.
Dangote had earlier told investors and analysts in Botswana that the IPO could open within 10 to 12 days.
He disclosed that the offer was expected to raise approximately $5 billion, a figure that could make it the largest public offering in Africa.
For investors watching Nigeria’s capital market, the countdown to the Dangote Refinery share sale has effectively begun.
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