Dangote Petroleum Refinery’s public offer has reportedly attracted subscriptions several times above its original fundraising target, with a fourfold subscription of the N2.15tn offer value translating to about N8.61tn.
President of Dangote Group, Aliko Dangote, disclosed on Monday that subscriptions had exceeded the amount the company originally intended to raise by more than three or four times, as the refinery extended the closing date of its share offer by two weeks to attract more African investors.
The company has not, however, disclosed the exact amount subscribed or confirmed that the fourfold figure applies to the full value of the offer.
The IPO comprises 4.1 billion ordinary shares priced at N525 each, giving the offer a total value of N2.1525tn if all the shares are subscribed.
A calculation that multiplies the N2.1525tn offer value by four puts potential subscriptions at N8.61tn. This represents an estimate based on the offer value and Dangote’s remarks.
In a statement by the Dangote Group on Monday, Dangote was quoted as saying that the extension was not driven by a need to raise more money but by the company’s desire to give more Africans an opportunity to own shares in the business.
“The IPO is going very well. We will extend the closing date because we want more of our African brothers and sisters to participate. Following our discussions with the Nairobi Stock Exchange, we have identified what we believe is the best way to facilitate participation. We are now trying to replicate that arrangement with other African exchanges to ensure wider participation,” he said.
Explaining the level of subscriptions received, Dangote said, “But when it comes to the amount of money we originally intended to raise, we have already received subscriptions amounting to more than three or four times that figure. So, it is not about the amount of money. It is about the number of people who will have the opportunity to participate in this offer. That means quite a lot to us.”
The offer, which opened on September 14, was initially scheduled to close on October 13 but will now remain open until October 27, following approval from the Securities and Exchange Commission.
The company said the additional two weeks would support efforts to expand access to the offer across African markets, including through wider distribution channels and unsponsored depository receipt programmes designed to facilitate cross-border investment.
It added that the extension would give prospective investors more time to complete account-opening procedures, identity verification and other regulatory requirements necessary to participate in the offer.
The Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals FZE, David Bird, said the extension would enable more investors across the continent to participate in the company’s future growth.
“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,” he said.
The public offer provides investors with an opportunity to acquire shares in the refinery at N525 per share.