The Securities and Exchange Commission, SEC, has approved the Initial Public Offering, IPO, of Dangote Petroleum Refinery and Petrochemicals FZE at N525 per share, with the proposed offer potentially raising N2.15 trillion.
The offering comprises 4.1 billion ordinary shares and is expected to be one of the largest capital market transactions in Nigeria if fully subscribed. Market is expected to open within two weeks.
The approval allows the refinery to proceed with the next stages of the IPO process, including its Completion Board Meeting and Signing Ceremony.
Dangote Group said the SEC conveyed the approval in a letter to Vetiva Advisory Services Limited, the Lead Issuing House, signed by Abdulkadir Abbas, director of the Securities and Investment Services Department.
In addition to approving the proposed offer, the SEC has registered 120.13 billion existing ordinary shares of the refinery.
The regulatory clearance represents a significant milestone in the company’s plan to broaden investor participation in its refining and petrochemicals business while deepening activity in Nigeria’s capital market.
Located in Ibeju-Lekki, Lagos, the Dangote Petroleum Refinery and Petrochemicals Complex occupies about 2,635 hectares and houses an integrated refining and petrochemicals facility.
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The refinery currently has a stated refining capacity of 700,000 barrels per day, making it the world’s largest single-train refinery, according to the company.
The complex also includes a polypropylene plant with a production capacity of 900,000 tonnes per annum and a dedicated 435-megawatt power plant.
At full production, the facility is designed to meet Nigeria’s domestic demand for refined petroleum products while supplying additional volumes to export markets.
The company is also expanding the refinery, with plans to increase its capacity to 1.4 million barrels per day. Dangote Group says the expansion would position the facility to become the world’s largest refinery.
The IPO approval follows the company’s completion of a $1 billion underwriting programme announced on August 18 as part of preparations for the public offering.
The development also comes after Dangote Group Chief Executive Officer Aliko Dangote said that the IPO would open within the next 10 to 12 days.
The proposed listing is expected to provide investors with an opportunity to take part in one of Nigeria’s largest industrial ventures while giving the refinery access to additional capital as it pursues its planned capacity expansion.
The Cable
