Africa-Press – Nigeria. The Nigerian Securities and Exchange Commission has approved the initial public offering for the Dangote refinery, paving the way for one of the largest stock sales in the history of the African continent.
The Dangote Group stated that the offering could raise approximately 2.15 trillion naira (1.63 billion dollars) if fully subscribed, through the sale of 4.1 billion ordinary shares at a price of 525 naira per share.
According to a local source, the reception of investor applications is set to begin on September 14, with an official ceremony with the stock exchange planned for the following week to launch the process.
The securities authority has recorded approximately 120.13 billion outstanding shares for the company that owns the refinery, which places its implied value at around 47 billion dollars based on local calculations.
The offering comes at a time when Nigerian billionaire Aliko Dangote is seeking to raise funds to expand the refinery and double its production capacity from 650,000 barrels per day to 1.4 million barrels per day.
Dangote announced during a meeting with investors and analysts in Botswana on September 3 that the offering would open within ten to twelve days, emphasizing that his goal is to transform the refinery into one of the largest industrial companies in Africa.
The refinery, which cost approximately 20 billion dollars to build, reached its full design capacity of 650,000 barrels per day in February and has tested production levels of around 700,000 barrels per day.
The company also intends to implement a mechanism that allows for an increase in the shares offered by up to 15% if demand exceeds the initial offering size, having already secured a subscription commitment of 400 million dollars.
Dangote expressed his desire for investors from various parts of Africa, including individual investors in Nigeria, to participate in the offering, presenting the process as one with an African dimension rather than solely Nigerian.
