Nigerians will be able to acquire shares in Dangote Petroleum Refinery and Petrochemicals FZE with as little as ₦5,250 when the proposed Initial Public Offering (IPO) opens.
The company has set the minimum subscription at 10 ordinary shares, priced at ₦525 each.
Chief Executive Officer of Dangote Group, Aliko Dangote, disclosed this on Monday during the signing ceremony for the IPO in Lagos, saying the offer was designed to give ordinary Nigerians an opportunity to participate in the ownership of the refinery.
“In this IPO, we intend to raise just a bit more than N2 trillion, which I am sure is too small, at an offer price of N525 with a minimum subscription of only 10 shares (N5,250) to fund our expansion of the refinery,” Dangote said.
The proposed offer comprises 4.1 billion ordinary shares at ₦525 each and is expected to raise about ₦2.15 trillion if fully subscribed. The funds will be used to support the next phase of expansion of the refinery in Lekki, Lagos.
Dangote said the relatively low minimum subscription was aimed at broadening participation and enabling more Nigerians to become shareholders in the company.
“This is the IPO for the people. There is no segregation on who can own the shares. We want every human being living on the continent to be part of this action,” he said.
The Securities and Exchange Commission (SEC) approved the proposed IPO on September 5, clearing the way for the public offer. The regulatory approval covers the proposed sale of 4.1 billion ordinary shares at ₦525 each.
The proposed public offer is expected to broaden the ownership structure of the refinery and pave the way for the company’s planned listing on the Nigerian Exchange.
Dangote said the offer price was deliberately structured to encourage wider participation and support long-term savings through equity investment.
The refinery, which currently has a refining capacity of 700,000 barrels per day, is undergoing expansion that is expected to increase its capacity to 1.4 million barrels per day.
The facility has also become an important source of refined petroleum products for the domestic market and has expanded its exports to other African countries.
The proposed IPO will therefore enable members of the public to take a stake in one of Nigeria’s largest private-sector industrial projects while providing the refinery with additional capital for its expansion programme.
The official IPO website currently lists the offer price at ₦525 per share and the minimum subscription at 10 shares, or ₦5,250. It says subscription dates will be confirmed and advises prospective investors to subscribe only through approved channels.
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