NEWS
Dangote Refinery Sets ₦5,250 Minimum Subscription for Proposed IPO
The Dangote Petroleum Refinery and Petrochemicals FZE is set to make its proposed Initial Public Offering (IPO) accessible to a broad range of investors, with the minimum subscription pegged at just 10 ordinary shares, translating to an investment of ₦5,250.
The announcement was made by Aliko Dangote, Chief Executive Officer of Dangote Group, during a signing event held in Lagos on Monday, as preparations intensify for the proposed public offering of shares in the massive Lekki-based refinery.
Dangote disclosed that the IPO will comprise 4.1 billion ordinary shares, with each share having a nominal value of $0.000013 and being offered to investors at ₦525 per share.
At the minimum subscription level of 10 shares, prospective investors would therefore need only ₦5,250 to participate in the offer, potentially opening the opportunity to a wider segment of Nigerians and other eligible investors.
The planned offering is expected to raise slightly more than ₦2 trillion, with the proceeds earmarked primarily to support the refinery’s expansion programme and strengthen its capacity as it continues to scale up operations.
Explaining the size and structure of the offering, Dangote said the company deliberately set a relatively low minimum subscription threshold to make participation more accessible while raising substantial capital for its expansion plans.
“In this IPO, we intend to raise just a bit more than ₦2 trillion, which I’m sure is too small, at an offer price of ₦525 naira, with a minimum subscription of only 10 shares to fund our expansion of the refinery,” he said.
The proposed IPO represents a major development in the evolution of the Dangote Refinery, which has emerged as one of Africa’s largest single-train petroleum refineries and a significant component of Nigeria’s efforts to expand domestic refining capacity.
With the planned capital raise, the refinery is expected to have greater financial capacity to pursue further investments and expansion, while the public offering could also give investors an opportunity to take an ownership stake in one of Nigeria’s most prominent industrial projects.
The announcement comes amid growing interest in the refinery’s operations and its potential impact on Nigeria’s petroleum supply chain, particularly as the country seeks to reduce dependence on imported refined petroleum products and strengthen domestic energy security.
The proposed listing could also mark a significant milestone for Nigeria’s capital market, given the scale of the transaction and the prominence of the Dangote Group within the country’s industrial and business landscape.