Dangote Petroleum Refinery and Petrochemicals has prolonged its ongoing $1.6 billion preliminary public providing (IPO), touted because the biggest-ever in Africa, by two weeks to allow extra participation throughout Africa, following sturdy, continent-wide curiosity, the corporate mentioned on Monday.
“The IPO is going very well. We will extend the closing date because we want more of our African brothers and sisters to participate,” the corporate mentioned in a press release.
“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,” it added.
The public share sale, which targets retail traders, opened for subscription on 14 September and was attributable to shut on 13 October; earlier than the extension, it will have run by way of 27 October.
According to the refinery, majority-owned by Africa’s richest man, Aliko Dangote, the Securities and Exchange Commission has permitted the extension.
The IPO proceeds will finance the enlargement of the 700,000 barrel-per-day crude refining plant on the outskirts of Lagos, which is predicted to double its present capability by 2030.
The IPO presents 4.1 billion shares at ₦525 per unit, with a minimal subscription of 10 shares. The IPO features a inexperienced shoe possibility, permitting a further 30 per cent of the shares on provide to be offered whether it is oversubscribed.
In July, a non-public placement forward of the IPO was 270 per cent oversubscribed, although the unique plan was to boost $2.5 billion.
Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group, underwrote and funded $600 million of the personal placement.
READ ALSO: How Lafarge tried to “frustrate” Dangote’s cement expansion in Africa – Obasanjo
The IPO attracted billions of naira inside minutes of opening. At the identical time, a number of buying and selling platforms, together with Bamboo and Cowrywise, experienced downtime on the primary day of the provide, overwhelmed by subscription site visitors.
Mr Dangote mentioned within the Monday assertion that the IPO has already obtained subscriptions of “more than three or four times” the quantity it set out initially to boost.
According to the corporate, the extension would bolster efforts to develop entry to the provide throughout the continent, together with by increasing distribution channels and facilitating cross-border funding.
It mentioned the transfer would give potential traders extra time to finish the account-opening course of, identification verification, and different regulatory preconditions to take part within the IPO.
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