Dangote Refinery extends N2.15trn IPO by two weeks

Dangote Petroleum Refinery and Petrochemicals FZE has extended its N2.15 trillion initial public offering (IPO) by two weeks to 27 October, following approval from the Securities and Exchange Commission (SEC), giving prospective investors additional time to participate in the share sale.

The offer, which opened on 14 September, was originally scheduled to close on 13 October. The extension is intended to accommodate ongoing efforts to expand access to the offer across African markets and enable more investors to complete the regulatory and account-opening requirements needed to subscribe.

Under the offer, the refinery is selling 4.1 billion ordinary shares at N525 per share, representing a significant capital market transaction aimed at broadening investor participation in the company.

In a notice to the investing public, the company said it had received strong interest from eligible investors across Africa and other jurisdictions since the launch of the IPO.

It explained that the extension would support the expansion of distribution channels and the implementation of depositary receipt programmes designed to facilitate cross-border participation.

The additional two weeks would also allow prospective investors to complete account opening, identity verification and other regulatory requirements necessary to participate in the offer.

David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, said the extension would widen access to the IPO across African markets.

“We welcome the SEC’s approval of the extension, which will give more investors across Africa the opportunity to participate in the offer. From the outset, our ambition has been to enable as many people as possible to participate in the IPO and share in DPRP’s future growth. The additional time will help us extend that opportunity to more investors across Africa,” Bird said.

The revised timetable shows that the application list will now close on 27 October, while collation of returns is scheduled for 3 November.

The submission of the basis of allotment proposal and draft allotment announcement to the SEC is scheduled for 10 November, with the regulator’s no-objection to the basis of allotment expected on 17 November.

The transfer of net offer proceeds to the refinery and publication of the allotment announcement are scheduled for one business day after the allotment date. Refunds of surplus or rejected application monies are expected within five business days after allotment.

The crediting of successful investors’ Central Securities Clearing System accounts and the commencement of trading in the shares are scheduled for 15 business days after the allotment date.

The company cautioned that the timetable is indicative and may be adjusted by the issuing houses in consultation with the issuer if key events are not completed as scheduled.

The extension comes as the refinery seeks to widen participation in its share offer beyond its initial investor base, with the company identifying improved distribution and cross-border access as central to its efforts to attract eligible investors across its target markets.

At N525 per share, the 4.1 billion shares on offer have a total value of N2.1525 trillion, based on the stated offer size and price.