Dangote Refinery plans $1.5 billion IPO from September 14 — media
Dangote Refinery plans to open its order book for an initial public offering to retail investors on September 14. The share sale is estimated at $1.5 billion. This was reported by Premium Times Nigeria, citing Reuters and two people familiar with the company’s plans. Their names were not disclosed.
Offering parameters
According to Reuters, pricing could begin soon, with an indicative price of 525 naira per share, or about $0.40. The company plans to offer 4.1 billion shares for subscription.
In the event of excess demand, the company will be able to additionally sell up to 15% of the offering volume, one Reuters source said. The report also notes that Dangote Refinery is owned by Aliko Dangote, whom the publication calls Africa’s richest person.
The facility is described as the world’s largest single-train oil refinery. It is ready to double its design capacity to 1.4 million barrels per day.
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Financing and further plans
Funding is expected to be provided by proceeds from the planned share sale and a private placement conducted in July. According to a source, the company then raised $2.5 billion from institutional investors and wealthy private individuals, while the oversubscription level stood at 270%.
Dangote Group also plans to build another oil refinery with a capacity of 700,000 barrels per day in the coastal Kenyan city of Lamu. Last month, the group offered a 30% stake in the project to countries in the region, including Kenya, Rwanda and Ethiopia. Construction is scheduled to begin this month.
Dangote Refinery is considering a cross-listing on the Johannesburg Stock Exchange after an initial listing in Lagos. In August, the company said that a London listing was not currently under consideration, and that a potential offering in the British capital could take place no earlier than in three years.
