Dangote Petroleum Refinery has extended the closing date of its N2.15tn public share offer by two weeks after Group President Aliko Dangote disclosed that subscriptions had exceeded the company’s original fundraising target by more than three or four times.
The offer, which opened on September 14 and was initially scheduled to close on October 13, will now remain open until October 27 following approval from the Securities and Exchange Commission (SEC).
Dangote said the extension was intended to give more investors across Africa an opportunity to acquire shares in the refinery, rather than to raise additional funds.
Dangote says wider participation is the priority
In a statement issued by the Dangote Group on Monday, the businessman said the public offer had attracted strong demand and that the company wanted to make participation more accessible to investors across the continent.
He said discussions with the Nairobi Securities Exchange had helped identify a possible way to facilitate participation, with similar arrangements being explored through other African exchanges.
Dangote explained that subscriptions had already exceeded the amount the company initially intended to raise several times over.
He added that the extension was about increasing the number of people who could participate in the offer and share in the business.
What the N2.15tn share offer means
The initial public offer comprises 4.1 billion ordinary shares priced at N525 each, giving the offer a total value of approximately N2.1525tn if all the shares are subscribed.
Based on that offer value, multiplying the amount by four produces an illustrative figure of about N8.61tn.
However, this is a mathematical estimate rather than a confirmed subscription total. The company has not disclosed the exact amount subscribed or confirmed that the reported multiple applies to the entire N2.1525tn offer value.
Investors should therefore distinguish Dangote’s comments about subscriptions exceeding the original fundraising target from a formally reported final subscription figure.
Extension aims to attract more African investors
The company said the additional two weeks would help expand access to the offer across African markets.
Its plans include wider distribution channels and unsponsored depository receipt programmes intended to make cross-border investment easier.
The extension is also expected to give prospective investors more time to complete account-opening procedures, identity verification and other regulatory requirements needed to participate.
David Bird, managing director and chief executive officer of Dangote Petroleum Refinery and Petrochemicals FZE, welcomed the SEC’s approval.
Bird said the company had aimed from the beginning to allow as many investors as possible to participate in the IPO and benefit from the refinery’s future growth.
He added that the extra time would help extend the opportunity to more people across the continent.
Investors can buy shares at N525 each
The public offer gives investors an opportunity to acquire shares in Dangote Petroleum Refinery at N525 per share.
The extension provides additional time for interested investors to review the offer and complete the necessary application procedures before the revised October 27 deadline.
The final level of participation will become clearer when the offer closes and the company releases verified subscription figures.
For now, Dangote’s comments indicate strong reported demand, while the extension reflects the company’s stated objective of widening share ownership across African markets….Read more