Ethiopia’s capital markets regulator has said investors in the country may take part in Nigeria’s $1.6bn Dangote Petroleum Refinery initial public offering (IPO) only if they meet its qualified-investor criteria, ruling out sales to the general public.
The Ethiopian Capital Market Authority (ECMA) issued a notice on October 13 stating that the proposed securities offering must comply with national capital market laws and cannot be marketed to the general public under the qualified-investor exemption, Capital Ethiopia reported.
Under the restrictions, no more than 100 qualified investors may participate in an exempt offering unless the regulator grants prior approval. Intermediaries must verify and document investors’ eligibility, while offering materials must explicitly state that the securities are restricted to qualified investors.
The offering may not be advertised or marketed in ways that could reach investors who do not meet the criteria. ECMA warned that unauthorised marketing, solicitation or sales could violate Ethiopia’s Capital Market Proclamation No. 1248/2021 and Public Offer and Trading of Securities Directive No. 1030/2024.
The authority said its notice followed an inquiry concerning the proposed Ethiopian offering. It did not say how many investors were expected to participate, whether Ethiopia would receive a specific allocation or which intermediaries would handle subscriptions.
The IPO has not been registered as a public offering outside Nigeria, leaving cross-border participation subject to each country’s securities rules.
Ethiopia’s approach is similar to Uganda’s, where the regulator limited the offer to high-net-worth and professional investors, while Kenya approved retail participation through global depositary receipts. Kenya’s depositary-receipt programme targets up to KES39bn ($300mn), almost 19% of the IPO by value if fully subscribed.
See IntelliNews: East African investors offered $300mn slice of Nigeria’s Dangote refinery IPO
The restriction means Ethiopian retail savers cannot take part in an offering that Dangote has promoted as an “IPO for the people”, targeting up to 10mn shareholders across Africa.
Citi’s (NYSE: C) head of banking for sub-Saharan Africa, Akin Dawodu, said the offering could encourage widaer participation in African equity markets. “Something like (Dangote) brings people back to the market,” he told Reuters on October 12.
The Nigerian company is offering 4.1bn ordinary shares at NGN525 each. Net proceeds of about $1.55bn would cover roughly 11% of a $14.3bn expansion intended to double capacity from 700,000 barrels per day (bpd) to 1.4mn bpd by 2029. The refinery reported a net profit of $1.82bn in the first half of 2026, reversing a loss in 2025.
Dangote extended the subscription period by two weeks to October 27 with the approval of Nigeria’s Securities and Exchange Commission, Reuters reported on October 12, to allow more time for cross-border participation and account-opening procedures. The extension does not change Ethiopia’s eligibility rules.
See IntelliNews: Dangote refinery extends $1.6bn Nigeria IPO to October 27 amid strong demand
The offering could raise up to about $2.1bn if the company exercises its option to issue up to 30% more shares, according to a presentation at the IPO signing ceremony.
Dangote’s refinery in Ibeju-Lekki near Lagos began operations in 2024 and was developed at an estimated cost of $20bn.
Ethiopia’s capital market remains in its infancy. The Ethiopian Securities Exchange launched in January 2025 and had four listed companies by mid-2026, while ECMA granted its first foreign investment banking licence, to Nigeria’s United Capital (NGX: UCAP), in June.
See IntelliNews: Ethiopia grants first foreign investment banking licence to Nigeria’s United Capital
ECMA stressed that permission for qualified-investor participation would not constitute an endorsement of the securities or a guarantee of their financial performance.