Dangote Refinery IPO pulls N1.5trn in six hours as SEC, banks warn on scams

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Dangote Petroleum Refinery's N2.15 trillion initial public offering has pulled in subscriptions of about N1.5 trillion within its first six hours, according to reports, triggering a scramble that regulators and banks now fear fraudsters will exploit.

The Securities and Exchange Commission and lenders including Access Bank have warned prospective shareholders to stick to approved channels and never hand over banking details to anyone claiming to facilitate the purchase of Dangote Refinery shares.

What the offer looks like

Dangote Industries Limited launched the offer with 4.1 billion shares in the refinery priced at N525 per share. The company is targeting about N2.15 trillion from investors.

Subscriptions reportedly hit roughly N1.5 trillion within the first six hours of trading, a pace that also put pressure on some investment and trading platforms as Nigerians rushed to access the offer.

Aliko Dangote, president and chief executive of Dangote Industries Limited, described the public offer as a chance for investors to share in the refinery's growth and potential wealth creation.

Prospective investors can subscribe through 32 approved banks, fintech platforms, mobile money operators and NGX Invest. Dangote Petroleum Refinery and Petrochemicals FZE published the list on its official IPO website.

SEC and banks raise the alarm

The SEC confirmed it approved the public offer but cautioned investors against dealing with unauthorised individuals or platforms. The regulator said subscriptions and payments must go only through authorised receiving agents, approved platforms and designated channels.

Banks have reinforced the warning after the launch. Customers are being told to treat unexpected calls, text messages, emails and social media posts promising Dangote Refinery shares or special allocations with suspicion.

Fraudsters typically exploit big financial events by posing as bankers, brokers, investment advisers or representatives of well-known companies. They also copy familiar company logos and write professional-looking messages to make fake offers look legitimate.

In a message to customers, Access Bank was direct. "Buying the Dangote Refinery IPO? Remember, Access Bank will never ever ask for your full card number, PIN, CVV or OTP," the bank said.

It advised customers who may have already disclosed such information to secure their accounts immediately. Other lenders gave the same reminder: no legitimate bank asks for PINs, CVVs, OTPs or complete card details through unsolicited messages.

What investors should do

Investors should verify any investment instruction independently before sending money. Instead of clicking links in unexpected messages, they should use official bank, broker, NGX or other approved subscription channels.

Anyone who suspects their banking credentials have been compromised should contact their bank at once and secure the affected account.

With the offer drawing this much attention, the message from regulators and lenders is simple: the rush to own a piece of one of Africa's biggest industrial projects should not cost investors their financial security.

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