The Dangote Refinery IPO has attracted strong investor interest, with estimated subscriptions reaching N8.61tn. This figure represents four times the offer’s total value of N2.15tn. However, the company has not confirmed the exact amount subscribed.
Aliko Dangote, President of Dangote Group, announced the extension on Monday. The company has moved the closing date from October 13 to October 27. This gives more African investors time to participate in the share offer.
Dangote Wants More Africans to Own Refinery Shares
Dangote said the extension was not about raising additional funds. Instead, the company wants more Africans to own shares in the refinery.
“The IPO is going very well. We will extend the closing date because we want more of our African brothers and sisters to participate,” he said.
He explained that the company had discussed ways to improve access with the Nairobi Stock Exchange. Dangote also said the group was working to replicate similar arrangements with other African exchanges.
According to him, subscriptions had exceeded the company’s original fundraising target by more than three or four times. However, he stressed that wider participation mattered more than raising additional money.
Dangote Refinery Shares Cost N525 Each
The public offer comprises 4.1 billion ordinary shares priced at N525 each. If investors subscribe to all the shares, the offer will be worth approximately N2.15tn.
Multiplying that value by four gives an estimated N8.61tn in subscriptions. However, this figure remains an estimate based on the offer value and Dangote’s remarks. The company has not confirmed that subscriptions have reached this amount.
The offer opened on September 14. Following approval from the Securities and Exchange Commission (SEC), investors now have until October 27 to participate.
Extension Gives Investors More Time
The company plans to expand access through wider distribution channels and unsponsored depository receipt programmes. These arrangements could make cross-border investment easier for African investors.
David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals FZE, welcomed the extension.
“We welcome the SEC’s approval of the extension, which will give more investors across Africa the opportunity to participate in the Offer,” he said.
Bird added that the extra time would help more investors share in the company’s future growth. Investors can use the extended period to complete account opening, identity verification and other regulatory requirements.
