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Nigerians can now buy shares in Dangote Petroleum Refinery and Petrochemicals FZE for as little as N5,250 following the launch of the company’s initial public offering (IPO).
The offer, which opened on September 14 and will close on October 13, involves 4.1 billion ordinary shares priced at N525 each. If fully subscribed, the IPO will raise about N2.15 trillion.
Speaking at the opening gong ceremony and Facts Behind the Offer presentation at the Nigerian Exchange in Lagos, FCMB Group Chief Executive, Ladi Balogun, said the offer would give Nigerians an opportunity to own stakes in a world-scale business while deepening participation in the capital market.
He said the minimum subscription of 10 shares had made the offer accessible to individual investors.
“It presents an opportunity for every Nigerian to experience the benefits of investing in world-class and world-scale businesses that would otherwise be inaccessible,” Balogun said.
President of Dangote Industries, Aliko Dangote, said the IPO was designed to broaden ownership of the refinery and enable Nigerians across different income and professional groups to invest in the business. “This is an IPO for the people,” Dangote said, adding that drivers, cooks, traders, employees and managers could all have the opportunity to own a stake in the refinery.
Balogun said the capital market was increasingly attracting retail, high-net-worth, institutional and international investors through a growing number of investment channels.
He said retail investors were buying shares through mobile phones, fintechs, banks and stockbrokers, while pension funds and other institutional investors were providing depth and international investors were bringing scale.
According to him, the breadth of participation demonstrates the capacity of the Nigerian capital market to support credible companies in raising capital on a large scale.
FCMB Group is participating in the transaction through three of its operating companies. FCMB Capital Markets is a joint issuing house, CSL Stockbrokers is stockbroker to the issue, while First City Monument Bank is a receiving bank and distribution agent.
Investors can subscribe through FCMB branches, business offices and the FCMB Mobile App, among other approved channels.
The Dangote Refinery currently has a processing capacity of about 700,000 barrels of crude oil per day and plans to expand capacity to approximately 1.4 million barrels per day.
