Dangote refinery gets SEC approval for N525 per share IPO
By Aboki Forex —
The Securities and Exchange Commission has approved the Initial Public Offering of Dangote Petroleum Refinery and Petrochemicals FZE, clearing the way for the company to raise approximately N2.15tn from the Nigerian capital market. The Dangote Group announced the approval in a statement on Friday.
Offer structure
The proposed offer comprises 4.1 billion ordinary shares at N525 per share. Full subscription would raise about N2.15tn. The SEC has also registered the company's existing 120.13 billion ordinary shares.
The approval was conveyed in a letter to the Lead Issuing House, Vetiva Advisory Services Limited, signed by Abdulkadir Abbas, Director of the Securities and Investment Services Department of the SEC. The statement said the regulatory approval cleared the refinery's draft offer documents and authorised the company to proceed with its completion board meeting and signing ceremony.
“The regulatory approval clears the refinery’s draft offer documents and authorises the company to proceed with its completion board meeting and signing ceremony, marking a significant milestone in the IPO process,” the statement said.
Refinery scale and capacity
The Dangote Refinery and Petrochemicals Complex is located in Ibeju-Lekki, Lagos. It occupies about 2,635 hectares and houses an integrated refining and petrochemicals facility. The complex has a refining capacity of 700,000 barrels per day, alongside a 900,000-tonnes-per-annum polypropylene plant. It is powered by a dedicated 435-megawatt power plant.
At full production, the refinery is designed to satisfy Nigeria's domestic demand for refined petroleum products while generating substantial volumes for export markets. The facility is undergoing expansion expected to increase capacity to 1.4 million barrels per day, which would make it the world's largest refinery.
The refinery is supported by a marine facility with five Single Point Moorings. Its integrated port infrastructure includes multiple quays capable of handling Panamax vessels, liquid cargo shipments and roll-on/roll-off operations. The refinery also has 177 storage tanks with a combined capacity of 4.742 billion litres.
The company said the facility incorporates advanced processing technology that meets World Bank, United States Environmental Protection Agency, European emission standards and Nigerian regulatory requirements.
Capital market impact
With the SEC approval, the proposed IPO is a major step in Dangote refinery's plan to broaden investor participation and raise fresh capital. The Dangote Group statement said the SEC clearance would create an opportunity for investors to participate in ownership of the refinery while deepening Nigeria's capital market.
“The SEC’s clearance represents another major step in the evolution of Dangote Petroleum Refinery, opening investment opportunities in one of Africa’s most strategic industrial assets and further strengthening Nigeria’s capital market,” the statement said.