Dangote Petroleum Refinery extends IPO amid strong investor demand

Dangote Petroleum Refinery and Petrochemicals has prolonged its ongoing $1.6 billion preliminary public providing (IPO), touted because the biggest-ever in Africa, via two weeks to permit extra participation throughout Africa, following powerful, continent-wide pastime, the corporate stated on Monday.

“The IPO goes rather well. We will be able to lengthen the remaining date as a result of we would like extra of our African brothers and sisters to take part,” the corporate stated in a observation.

“Following our discussions with the Nairobi Inventory Alternate, we have now known what we consider is the easiest way to facilitate participation. We at the moment are looking to mirror that association with different African exchanges to verify wider participation,” it added.

The general public proportion sale, which goals retail buyers, opened for subscription on 14 September and used to be because of shut on 13 October; sooner than the extension, it could have run via 27 October.

In step with the refinery, majority-owned via Africa’s richest guy, Aliko Dangote, the Securities and Exchange Commission has licensed the extension.

The IPO proceeds will finance the growth of the 700,000 barrel-per-day crude refining plant at the outskirts of Lagos, which is anticipated to double its present capability via 2030.

The IPO gives 4.1 billion stocks at ₦525 consistent with unit, with a minimal subscription of 10 stocks. The IPO features a inexperienced shoe possibility, permitting an extra 30 consistent with cent of the stocks on be offering to be bought whether it is oversubscribed.

In July, a non-public placement forward of the IPO used to be 270 consistent with cent oversubscribed, even supposing the unique plan used to be to boost $2.5 billion.

Pan-African Refinery Funding SPV, a subsidiary of Lilium Capital Crew, underwrote and funded $600 million of the personal placement.

READ ALSO: How Lafarge tried to “frustrate” Dangote’s cement expansion in Africa – Obasanjo

The IPO attracted billions of naira inside mins of opening. On the identical time, a number of buying and selling platforms, together with Bamboo and Cowrywise, experienced downtime at the first day of the be offering, beaten via subscription site visitors.

Mr Dangote stated within the Monday observation that the IPO has already gained subscriptions of “greater than 3 or 4 occasions” the volume it set out at the beginning to boost.

In step with the corporate, the extension would bolster efforts to increase get entry to to the be offering around the continent, together with via increasing distribution channels and facilitating cross-border funding.

It stated the transfer would give potential buyers extra time to finish the account-opening procedure, id verification, and different regulatory preconditions to take part within the IPO.