Dangote Refinery IPO Drew About N5.85 Trillion in Bids, Bloomberg Reports

Investors applied for about N5.85 trillion worth of shares in Dangote Petroleum Refinery and Petrochemicals’ initial public offering, according to Bloomberg. That was roughly 2.7 times the N2.15 trillion offer announced by the Nigerian Exchange.

With demand exceeding the original offer, applicants are waiting to find out how many shares they will receive.

Bloomberg reported that the Securities and Exchange Commission was expected to approve the proposed allotment on 17 November. The refinery says it is still reviewing applications.

The offer closed on 27 October. The refinery had put 4.1 billion ordinary shares up for sale at N525 each with a minimum application of 10 shares costing N5,250.

Its official IPO portal says applications came from 120 countries, including all 54 African countries.

Bloomberg, citing people familiar with the offer, reported that the refinery received nearly four million unique applications.

Nigerian pension fund managers sought shares, while South Africa’s Public Investment Corporation reportedly requested a large allocation.

The South African fund told Bloomberg it was unable to comment on the proposed IPO. A Dangote spokesperson declined to comment.

The refinery has directed applicants to the bank, investment app or stockbroker they used to subscribe for updates, News About Nigeria reports.