The Initial Public Offering (IPO) of Dangote Refinery has recorded a strong early response, with billions of naira reportedly subscribed by thousands of investors within minutes of the offer opening on Monday.
Chairman of Access Holdings, Aigboje Aig-Imoukhuede, disclosed the development during the “Facts Behind the Figures” ceremony held at the Nigerian Exchange (NGX) in Lagos.
Aig-Imoukhuede described the offering as a historic development, noting that data available in the IPO’s data room showed that billions of naira had already been committed by thousands of investors within minutes, or less than an hour, of the opening.
He commended the initiative, describing Dangote Refinery as a significant development with the potential to contribute substantially to Nigeria and the wider African economy.
The NGX Chairman, Umaru Kwairanga, also confirmed the strong investor response, revealing that subscriptions had exceeded N10 billion shortly after the market opened.
“From eight o’clock today, we are talking of over N10 billion and above that have already joined,” Kwairanga said.
The Dangote Refinery IPO, which commenced on September 14 and is scheduled to close on October 13, is targeting $1.6 billion in capital from investors across Africa. The company is aiming to attract up to 10 million shareholders, with a proposed listing expected in November.
The proceeds from the offering will be used to expand the refinery’s crude oil processing capacity from its current 700,000 barrels per day to 1.4 million barrels per day by 2030.
The offering is being described as the largest initial public share sale in Africa. The refinery has been valued at approximately $49 billion, and its proposed listing could significantly increase the market capitalisation of the NGX.
At the opening of trading on Monday, the NGX had a market capitalisation of about N157.6 trillion. Analysts expect the eventual listing of Dangote Refinery to substantially boost the size and depth of Nigeria’s capital market.
Africa’s richest man and founder of the Dangote Group, Aliko Dangote, officially declared the market and “Facts Behind the Figures” ceremony open at about 9:35 a.m. West African Time in Lagos.
The ceremony attracted several prominent business and financial leaders, including Dangote Refinery CEO David Bird; Dangote Group’s Vice President for Oil, Gas and Fertiliser, Edwin Devakumar; Nairobi Securities Exchange CEO Frank Nwiti; Botswana Stock Exchange Chairperson Neo Mooki; and the Ooni of Ife, Oba Adeyeye Ogunwusi.
Others in attendance included Zenith Bank founder and chairman Jim Ovia, former African Export-Import Bank President Benedict Okey Oramah, and Zenith Bank CEO Adaora Umeoji.
