SEC gives green light to Dangote refinery’s N2.15tn IPO

The Securities and Exchange Commission (SEC) has approved the application for a N2.15 trillion initial public offering (IPO) by Dangote Petroleum Refinery and Petrochemicals FZE.

The approval clears the way for the completion of the remaining pre-offer processes and documentation ahead of the proposed share sale.

Owner of the refinery, Aliko Dangote, and his professional advisers are expected to sign the final offer documents early next week.

The approval was conveyed in a letter addressed to the Lead Issuing House, Vetiva Advisory Services Limited.

The letter was signed by the SEC’s Director of Securities and Investment Services Department, Abdulkadir Abbas.

The commission approved proposed IPO of 4.1 billion ordinary shares at N525 per share, indicating initial offer size of N2.15 trillion.

SEC also approved Dangote Petroleum Refinery’s existing 120.13 billion ordinary shares.

Sources close to the parties said the completion board meeting and signing ceremony would be next week, ending the pre-offer processes and allowing the IPO to open for public subscription before the end of this month.

Located in Ibeju-Lekki, Lagos, Dangote Refinery and Petrochemicals currently has a refining capacity of 700,000 barrels per day, making it the largest single-train refinery in the world, alongside a 900,000 tonnes per annum polypropylene plant.

The company has recently launched expansion programme, which is expected to double its capacity to 1.4 million barrels per day, positioning it to become the world’s largest refinery.

Alhaji Aliko Dangote had told investors and analysts in Botswana that the IPO could open within the next 10 to 12 days

He said the IPO is expected to raise about $5 billion, potentially making it the largest public offering in Africa.

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