Dangote Refinery sets N5,250 minimum subscription for IPO

Aliko Dangote, CEO of Dangote Group, announced on Monday that the proposed IPO of Dangote Petroleum Refinery and Petrochemicals FZE will require a minimum subscription of 10 ordinary shares, valued at N5,250 each. The company aims to issue 4.1 billion ordinary shares at a price of N525 per share, hoping to raise N2.15 trillion from the IPO.

Dangote emphasized that the fundraising effort is not solely about raising capital for the refinery's expansion, but also to provide more people with the chance to become shareholders. He stressed that the pricing structure is not solely focused on maximizing funds, but rather on encouraging participation and promoting future savings.

The IPO was approved by the Securities and Exchange Commission on September 5, paving the way for the issuance of 4.1 billion shares at the proposed price. Dangote Refinery has been a significant contributor to Nigeria's domestic petrol supply and has been expanding its presence in regional African markets. In May, the refinery was supplying 41.5 million litres of petrol per day, up from 40.7 million litres in April.

The average capacity utilisation stood at 101.25%. The company has also been increasing its export activities, exporting 456,000 tonnes of refined petroleum products to African markets in the preceding months.