Dangote Refinery’s Initial Public Offering, IPO, has attracted thousands of investors within minutes of opening, according to Aigboje Aig-Imoukhuede, Chairman of Access Holdings.
Aig-Imoukhuede disclosed this on Monday at the Facts Behind the Figures ceremony at the Nigerian Exchange, NGX, in Lagos, where the landmark offer was officially presented to the investing public.
“With this particular, sterling, historic offer and what I have seen in the data room, where already billions of naira have been subscribed by thousands of investors within minutes or under an hour, you are a blessing to humanity,” he said.
The Dangote Refinery IPO is targeting $1.6 billion from investors across Africa, with the company aiming to attract about 10 million shareholders.
The offer opened on Sept. 14 and will run until Oct. 13, while the company is expected to list on the NGX in November.
The offer represents a major milestone for Nigeria’s capital market and is expected to significantly broaden public participation in the ownership of one of Africa’s largest oil refineries.
NGX Chairman Umaru Kwairanga corroborated the strong investor response, saying more than N10 billion had already been subscribed shortly after the market opened. “From eight o’clock today, we are talking of over 10 billion and above that have already joined,” he said.
The strong early subscription indicates significant investor interest in the refinery and its planned expansion. The IPO is expected to be the biggest-ever initial public share sale on the African continent.
Proceeds from the offer will be used to expand the refinery’s processing capacity. The refinery currently has a nameplate capacity of 700,000 barrels of crude oil per day, with plans to increase this to 1.4 million barrels per day by 2030.
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The expansion is expected to strengthen the refinery’s role in Nigeria’s energy sector and increase its ability to meet domestic and regional petroleum product demand.
The IPO values Dangote Refinery at approximately $49 billion. Analysts expect the potential listing to significantly increase the market capitalization of the NGX, which stood at N157.6 trillion at the opening of trading on Monday.
The listing could increase the exchange’s market capitalisation by about one-third, further strengthening the position of the Nigerian capital market.
Africa’s richest man, Aliko Dangote, officially opened the market and the Facts Behind the Figures ceremony at about 9:35 a.m. West African Time in Lagos.
The event attracted prominent figures from Nigeria’s financial, business and political circles, as well as representatives of African capital markets.
Among those present were Dangote Refinery Chief Executive Officer, David Bird; Dangote Group’s Vice President, Oil and Gas and Fertiliser, Edwin Devakumar; and Nairobi Stock Exchange CEO, Frank Nwiti.
The Chairperson of the Botswana Stock Exchange, Neo Mooki, and the Ooni of Ife, Oba Adeyeye Ogunwusi, also attended the ceremony.
Other notable figures included Jim Ovia, Founder and Chairman of Zenith Bank; Benedict Okey Oramah, immediate past President and Chairman of the Board of Directors of African Export-Import Bank; and Adaora Umeoji, Chief Executive Officer of Zenith Bank.
The strong investor response to the IPO marks a significant development for Dangote Refinery and Nigeria’s capital market, with the offer expected to widen ownership and provide funding for the company’s long-term expansion plans.
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