JUST IN: Dangote Sets N5,250 Minimum Subscription for Refinery IPO

Aliko Dangote, Chief Executive Officer of Dangote Group, has announced that investors can subscribe to the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE with a minimum of 10 ordinary shares valued at N5,250.

Dangote disclosed this on Monday at the signing ceremony for the refinery’s IPO held at Eko Hotel and Suites, Victoria Island, Lagos.

He said the offering comprises 4.1 billion ordinary shares, each with a nominal value of $0.000013, at an offer price of N525 per share.

The minimum subscription means investors will need at least N5,250 to participate in the proposed offering, based on the 10-share minimum.

The IPO is expected to provide investors with an opportunity to acquire an equity stake in the Dangote refinery, one of Africa’s largest oil refineries.

Read Also: Dangote Refinery Extends Free Fuel Delivery To Kano, Others, Marketers Hail Move

“In this IPO, we intend to raise just a bit more than N2 trillion, which I’m sure is too small, at an offer price of N525 naira, with a minimum subscription of only 10 shares to fund our expansion of the refinery,” he said.

Dangote explained that the funds would be used not only to finance the refinery’s expansion but also to give a broad range of Nigerians the opportunity to become shareholders in the company.

He said the offer was designed to enable “drivers, our cooks, our servants, our managers, and everybody” to own a stake in the refinery.

According to him, the investment would also provide subscribers with an opportunity to build their future savings through ownership of shares in the company.

The Dangote Group CEO described the public offer as “the IPO for the people”.

The IPO is expected to fund the refinery’s expansion while widening public participation in ownership of one of Nigeria’s largest industrial assets.