The world’s largest single-train oil refinery, Dangote Petroleum Refinery is expected to sign its Initial Public Offer (IPO) Monday 7th September.
THISDAY gathered last night that the signing ceremony will take place at 11am, at Eko Hotels, Lagos.
The founder and Africa’s richest person, Aliko Dangote, is targeting a $50 billion valuation for the 650,000 barrels per day (bpd) refinery. The company plans to sell up to a 10 per cent stake, potentially raising around $5 billion in one of Nigeria’s biggest capital market deals.
Since coming onstream a few years ago, the refinery has transformed Nigeria’s fuel supply chain by reducing dependence on imported petroleum products. The company had said that the projected valuation reflects the company’s internal expectations but declined to comment further on the timing or structure of the transaction.
The Securities and Exchange Commission (SEC) had weekend approved the IPO of Dangote Petroleum Refinery and Petrochemicals FZE, with the company offering 4.1 billion ordinary shares at N525 each.
The offer could raise approximately N2.15 trillion if fully subscribed, according to a statement issued by the Dangote Group on Sunday. The SEC’s approval cleared the way for the next stages of the offering.
According to the Commission, the proposed offering comprises 4.1 billion ordinary shares at N525 per share, with the potential to raise approximately N2.15 trillion if fully subscribed.
In addition, the SEC has registered the company’s existing 120.13 billion ordinary shares.
The regulatory approval cleared the refinery’s draft offer documents and authorised the company to proceed with its Completion Board Meeting and Signing Ceremony, marking a significant milestone in the IPO process.
The approval was conveyed in a letter to the Lead Issuing House, Vetiva Advisory Services Limited, signed by the Director of the Securities and Investment Services Department of the SEC, Abdulkadir Abbas.
SEC also registered the refinery’s existing 120.13 billion ordinary shares as part of the process. SearchPublic Records
The proposed offer will give investors an opportunity to acquire shares in one of Nigeria’s largest industrial projects as the refinery moves towards becoming a publicly traded company.
Emmanuel Addeh
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