Dangote Refinery’s IPO gives access to world-scale business – FCMB CEO

First City Monument Bank (FCMB) Chief Executive Ladi Balogun has lauded the Dangote Refinery Initial Public Offering (IPO) for allowing Nigerians access to a significant, world-scale business that individual investors would typically find challenging. The IPO of Dangote Petroleum Refinery and Petrochemicals FZE opened on September 14 for investors, offering 4.1 billion ordinary shares at N525 each with a minimum subscription of 10 shares.

This enables retail investors to start with just N5,250. If fully subscribed, the offer could raise around N2.15 trillion, positioning it as one of the most substantial capital-market transactions in Nigeria. Speaking at the opening gong ceremony and Facts Behind the Offer presentation at the Nigerian Exchange in Lagos, Balogun emphasized that the opportunity would enable every Nigerian to reap the benefits of investing in world-class and world-scale businesses, which are often out of reach.

The IPO also showcases the expanding reach and depth of Nigeria's capital market, attracting a diverse group of investors including retail investors, high-net-worth individuals, institutional investors, and international capital. Retail investors now have the convenience of purchasing shares through mobile applications provided by fintech companies, banks, and stockbrokers.

Balogun noted that retail participation has grown significantly, with investors increasingly using their mobile phones via fintech, banking, and brokerage services to buy shares. High-net-worth individuals and institutional investors, such as pension funds, provide additional depth to the market, while international investors contribute significant scale.

Balogun highlighted that the broad interest in the Dangote Refinery offer underscores Nigeria's capital market’s capability to support major domestic enterprises seeking substantial capital. He also pointed out that the refinery is largely shielded from macroeconomic and currency risks prevalent in Nigeria, indicating the potential trajectory of the economy.

FCMB Group disclosed its participation in the transaction through three of its operating entities: FCMB Capital Markets as a joint issuing house, CSL Stockbrokers as the stockbroker, and FCMB itself as the receiving bank and distribution agent. Investors can subscribe via FCMB branches, business offices, the FCMB Mobile App, and other designated channels.

CSL Stockbrokers will offer retail investors insights into the investment's merits and risks, while FCMB Capital Markets will cater to high-net-worth individuals and qualified investors.