According to reports, the Dangote Group has approached Nigeria’s Securities and Exchange Commission (SEC) to seek approval for an increase in the shares available under the ongoing offer, following strong demand from retail and institutional investors.
The refinery’s IPO opened on September 14, offering 4.1 billion ordinary shares at ₦525 per share.
The offer is expected to raise approximately ₦2.15 trillion, with the subscription period scheduled to close on October 13.
Dangote said the company was exploring ways to accommodate more investors, particularly those from across Africa who want to participate in the ownership of the refinery.
He noted that demand from Kenya and Botswana alone could potentially absorb the shares initially put up for sale.
More shares, wider ownership
The proposed increase could expand public participation in the refinery, which has been positioned as a major opportunity for individual investors to acquire stakes in one of Africa’s largest industrial projects.
The company initially set a target of attracting 10 million shareholders through the public offering.
However, the final number of additional shares that could be made available will depend on the regulatory approval and the structure adopted by the company.
The initial offer represents approximately 3.4 per cent of the refinery’s shareholding.
Any increase could involve existing shareholders making additional shares available, although the company has not publicly detailed the precise arrangement for expanding the offer.
Refinery expansion at the centre
The funds raised through the IPO are intended to support the refinery’s expansion plans, including increasing its processing capacity from 650,000 barrels per day to 1.4 million barrels per day.
The expansion is expected to strengthen the refinery’s ability to supply petroleum products to domestic and international markets, while supporting its ambitions to grow into a major player in the global energy industry.
The strong demand has also placed Nigeria’s investment platforms under pressure, with several digital platforms experiencing significant increases in activity as investors sought to participate in the offer.
As the October 13 closing date approaches, the focus will be on whether the regulator approves an increase in the offer and how many additional shares the company can accommodate.
Source: Trust Radio
