The public offer by Dangote Petroleum Refinery has reportedly attracted subscriptions several times above its original fundraising target, as the company extends the closing date by two weeks to enable more African investors to participate.
President of Dangote Group, Aliko Dangote, disclosed on Monday that subscriptions had exceeded the amount the company initially intended to raise by more than three or four times.
However, the company has not disclosed the exact amount subscribed or confirmed that the reported multiple applies to the full value of the offer.
The initial public offer comprises 4.1 billion ordinary shares priced at ₦525 each, giving the offer a total value of approximately ₦2.15 trillion if all the shares are subscribed.
Multiplying the offer value of ₦2.1525 trillion by four produces an estimated figure of ₦8.61 trillion. However, this remains a calculation based on the offer value and Dangote’s remarks, rather than a confirmed subscription total from the company.
In a statement issued by the Dangote Group on Monday, Dangote said the extension was not prompted by a need to raise additional funds but by the company’s desire to give more Africans an opportunity to own shares in the business.
“The IPO is going very well. We will extend the closing date because we want more of our African brothers and sisters to participate. Following our discussions with the Nairobi Stock Exchange, we have identified what we believe is the best way to facilitate participation. We are now trying to replicate that arrangement with other African exchanges to ensure wider participation,” he said.
Explaining the level of interest in the offer, Dangote added: “But when it comes to the amount of money we originally intended to raise, we have already received subscriptions amounting to more than three or four times that figure. So, it is not about the amount of money. It is about the number of people who will have the opportunity to participate in this offer. That means quite a lot to us.”
The offer, which opened on September 14, was initially scheduled to close on October 13. However, the closing date has now been moved to October 27 following approval from the Securities and Exchange Commission (SEC).
The company said the additional two weeks would support efforts to widen access to the offer across African markets through expanded distribution channels and unsponsored depository receipt programmes designed to facilitate cross-border investment.
It added that the extension would give prospective investors more time to complete account-opening procedures, identity verification and other regulatory requirements needed to participate in the offer.
The Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals FZE, David Bird, said the extension would provide more investors across the continent with an opportunity to participate in the company’s future growth.
“We welcome the SEC’s approval of the extension, which will give more investors across Africa the opportunity to participate in the Offer. From the outset, our ambition has been to enable as many people as possible to participate in the IPO and share in DPRP’s future growth. The additional time will help us extend that opportunity to more investors across Africa,” he said.
The public offer allows investors to acquire shares in Dangote Petroleum Refinery at ₦525 per share, as the company seeks to broaden its shareholder base and attract participation from investors across the continent.
