Dangote Petroleum Refinery and Petrochemicals FZE has extended the subscription period for its initial public offering (IPO) by two weeks to enable more investors across Africa to participate in the share sale.
Reports say the extension was intended to broaden access to the offering amid strong investor interest. The refinery’s IPO website lists October 27 as the new closing date, replacing the initial deadline of October 13.
The public offering opened on September 14, with 4.1 billion ordinary shares available at N525 each. Investors can subscribe to a minimum of 10 shares for N5,250.
If fully subscribed, the offer could raise approximately N2.15 trillion, equivalent to about $1.6 billion, while the refinery’s anticipated valuation approaches $50 billion.
According to Bloomberg, the extension would give investors in additional African markets more time to participate. However, differences in securities regulations and approval procedures for cross-border investments have complicated access for investors outside Nigeria.
Although Nigeria’s Securities and Exchange Commission approved the IPO under domestic regulations, the approval does not automatically permit the offer to be distributed in other countries. Investors in those markets must be reached through arrangements that comply with their respective securities laws.
Kenya has approved an offering of global depositary receipts linked to the IPO, while Uganda’s Capital Markets Authority has authorised its promotion and distribution to local investors. Other markets have faced registration and administrative requirements that reduced the time available for participation before the original deadline.
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The extension could provide additional time to establish cross-border arrangements and widen participation, although it does not guarantee that the entire amount will be subscribed.
The refinery is seeking to attract as many as 10 million shareholders, according to earlier statements by its founder, Aliko Dangote, reported by Reuters.
The minimum subscription of N5,250 is intended to make the offering accessible to retail investors, including first-time participants, rather than restricting ownership to wealthy individuals and institutional investors.
At an estimated valuation approaching $50 billion, the IPO could rank among Africa’s most significant equity offerings. However, the valuation represents the estimated worth of the entire business, not the amount expected to be raised from the public offer.
The company aims to raise approximately $1.6 billion to support its expansion plans, according to Bloomberg’s October 7 report. The offering would also give members of the public an opportunity to acquire stakes in a major industrial asset that has historically been privately owned.
For Nigeria’s energy sector, the share sale comes as the refinery plays an increasingly important role in domestic petroleum supply and regional fuel markets.
Wider public ownership could deepen Nigeria’s capital market and give investors exposure to the refinery’s performance in the refining and petrochemicals industries.
