Dangote Petroleum Refinery’s public share offer has reportedly attracted subscriptions exceeding its original fundraising target by more than threefold, prompting the company to extend the closing date by two weeks to October 27 to allow more African investors to participate. Aliko Dangote, President of Dangote Group, disclosed on Monday that subscriptions had surpassed the amount the company initially intended to raise by more than three or four times, stressing that the extension was aimed at widening ownership rather than raising additional funds.
The initial public offer comprises 4.1 billion ordinary shares priced at N525 each, giving it a total value of N2.1525tn if fully subscribed. Applying a fourfold subscription rate to the offer value produces an estimated N8.61tn in subscriptions. However, the company has not disclosed the exact amount subscribed or confirmed that the reported multiple applies to the entire offer value. The offer, which opened on September 14 and was initially scheduled to close on October 13, received approval from the Securities and Exchange Commission for the extension.
Dangote said the company was working with African stock exchanges, including the Nairobi Securities Exchange, to facilitate wider participation across the continent. According to the group, efforts are also underway to expand distribution channels and introduce unsponsored depository receipt programmes to support cross-border investment. The additional two weeks will give prospective investors more time to complete account-opening procedures, identity verification and other regulatory requirements necessary to participate in the offer.
David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals FZE, welcomed the SEC’s approval, saying the extension would enable more investors across Africa to share in the company’s future growth. He said the refinery’s ambition from the outset had been to make the IPO accessible to as many people as possible. The offer provides investors with an opportunity to acquire shares in the refinery at N525 per share.
