Dangote refinery IPO attracts N5.85tn subscriptions

Dangote Petroleum Refinery's initial public offering has garnered share applications worth approximately N5.85 trillion ($4.1bn), nearly threefold its initial fundraising goal. Investors from across Nigeria and Africa have shown strong interest in acquiring stakes in the facility, with applications coming from all 54 African countries, according to Bloomberg.

The refinery had aimed to raise at least $1.6bn through the IPO, but received about $1.9bn from Nigerian investors and $2.1bn from potential international buyers. The level of demand far exceeded the available shares, prompting the company to consider expanding the offering. Over 4 million unique subscription applications were received, indicating the scale of retail participation in the share sale.

Nigerian pension fund managers, representing about 11 million members, also sought allocations. The South African Public Investment Corporation, managing $220bn in pension assets, requested a substantial allocation, though the exact amount was not disclosed. Bloomberg reported that the company is expected to exercise an additional 30% over-allotment option, primarily to accommodate foreign investors.

The refinery, owned by Africa's wealthiest individual, Aliko Dangote, is a major component of Nigeria's plans to decrease reliance on imported petroleum products. The IPO aims to broaden the refinery's ownership base, attract long-term institutional capital, and enhance participation in African capital markets.