Dangote Refinery will sell shares at N5,250 for a minimum of 10 shares

Dangote Group Chief Executive Officer (CEO), Aliko Dangote says the minimum subscription amount for the initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE is 10 ordinary shares, which translates to N5,250.

Dangote stated this in Lagos on Monday, during a signing ceremony, and put the company on track to launch a $1.6 billion public equity sale, considered the largest such sale in Africa.

He said the refinery IPO consisted of an offering of 4.1 billion ordinary shares, each with a nominal value of $0.000013, at an offer price of N525 per share.

“In this IPO, we intend to raise a little over N2 trillion, which I believe is too small, at an offering price of N525 naira, with a minimum subscription of just 10 shares to fund our refinery expansion,” he said.

He said the funds were not only intended to finance the refinery expansion but also to ensure that the majority of “our drivers, our cooks, our waiters, our managers and everyone” would have the opportunity to own shares in the offering.

Dangote added that the offer is designed to enable customers to build their future savings through investments.

The CEO described the offering as an “IPO for the people.”

Lagos-based Vetiva Advisory Services Limited coordinated the capital raise.

The ceremony follows a landmark approval from the capital markets regulator, the Securities and Exchange Commission (SEC), last week, with 4.1 billion shares up for purchase at N525 ($0.40) per unit.