Dangote Refinery Extends $1.6bn IPO To October 27 As Subscriptions Exceed Target Fourfold

Dangote Petroleum Refinery and Petrochemicals has extended the deadline for its initial public offering (IPO) by two weeks to October 27 to give more investors across Africa the opportunity to participate in what is expected to be the continent’s largest share sale.

The extension, approved by the Securities and Exchange Commission (SEC), moves the closing date from October 13, following efforts to expand access to the offer through stock exchanges and investment platforms in other African countries.

The company said on Monday that the additional time would enable it to broaden distribution channels, facilitate cross-border investments and allow prospective investors to complete account-opening procedures, identity verification and other regulatory requirements.

The IPO, which opened on September 14, is part of the plan by Africa’s richest man, Aliko Dangote, to broaden ownership of the 700,000 barrels per day refinery by attracting as many as 10 million retail investors in Nigeria and other African countries.

The offering comprises 4.1 billion ordinary shares at N525 each, with a minimum subscription of 10 shares. It is expected to raise approximately $1.6 billion, although the amount could increase to about $2.1 billion if an over-allotment option is fully exercised.

Confirming the extension, the President of the Dangote Group, Aliko Dangote, said the move followed ‘exceptionally strong interest’ from a broad spectrum of eligible investors across Africa and other international markets.

Since the launch of the offer, he stated that investor participation has underscored the growing confidence in Dangote Refinery’s long-term growth prospects and its strategic role in transforming Africa’s energy landscape.

“The IPO is going very well. We will extend the closing date because we want more of our African brothers and sisters to participate. Following our discussions with the Nairobi Stock Exchange, we have identified what we believe is the best way to facilitate participation. We are now trying to replicate that arrangement with other African exchanges to ensure wider participation…

“But when it comes to the amount of money we originally intended to raise, we have already received subscriptions amounting to more than three or four times that figure…So, it is not about the amount of money.

“It is about the number of people who will have the opportunity to participate in this offer. That means quite a lot to us,” the statement quoted Dangote as having said in a chat with media men at the facility.

The company said the additional two-week period will support ongoing market-access initiatives across African jurisdictions, including the expansion of distribution channels and the rollout of unsponsored depository receipt programmes designed to facilitate seamless cross-border investment.

It explained that it will also provide more time for prospective investors to complete account-opening procedures, identity verification processes, and other regulatory requirements necessary for participation in the offer.

Also speaking on the extension, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals FZE, David Bird, stated that the additional time will help extend more opportunities to additional investors.

He said: “We welcome the SEC’s approval of the extension, which will give more investors across Africa the opportunity to participate in the offer. From the outset, our ambition has been to enable as many people as possible to participate in the IPO and share in DPRP’s future growth. The additional time will help us extend that opportunity to more investors across Africa.”

The company noted that it remains highly encouraged by the level of investor engagement received across its target markets and believes the extension will ensure broader participation by retail, institutional and cross-border investors seeking to be part of the refinery’s next phase of growth.

THISDAY learnt that the proceeds are intended to support the expansion of the refinery complex in Lagos, which began processing crude oil in early 2024 and has become central to Nigeria’s ambition to reduce dependence on imported refined petroleum products.

Exchanges across Africa had been in discussions with the company over arrangements to facilitate participation in the listing, which could value the business at close to $50 billion. Global depositary receipts have already been made available to investors in Kenya and Botswana, according to people familiar with the matter.

However, the offering’s prospectus indicates that the share sale is not registered as a public offering outside Nigeria, meaning investors in other countries must rely on applicable local regulations or access the shares through eligible investment platforms.