By Mary Izuaka

 

Investors have subscribed billions of naira to Dangote Refinery’s $1.6 billion Initial Public Offering (IPO), within minutes of the offer opening on Monday, officials said.

The Chairman of Access Holdings, Aigboje Aig-Imoukhuede, disclosed this at the “Facts Behind the Figures” presentation held at the Nigerian Exchange (NGX) in Lagos.

“With this particular, sterling, historic offer and what I have seen in the data room, where already billions of naira have been subscribed by thousands of investors within minutes or under an hour, you are a blessing to humanity,” Mr Aig-Imoukhuede said.

The Chairman of the NGX, Umaru Kwairanga, also confirmed the strong uptake.

“From eight o’clock today, we are talking of over N10 billion and above that have already joined,” he said.

Details of the offer

The month-long offer, which opened on 14 September, seeks to raise $1.6 billion across Africa and targets 10 million shareholders. It is scheduled to close on 13 October, with listing on the NGX expected in November.

According to the prospectus, the proceeds will be used to scale up the refinery’s capacity from 700,000 barrels per day to 1.4 million bpd by 2030.

At $49 billion, the IPO values Dangote Refinery as one of Africa’s most valuable companies. Analysts say the listing is expected to expand the NGX’s market capitalisation, which stood at N157.6 trillion at market open on Monday, by about one third.

The minimum subscription is 10 units at N525 per share, equivalent to N5,250, in a bid to drive retail participation across the continent.

Dignitaries attend market ceremony

Africa’s richest man, Aliko Dangote, declared the market open, and the Facts Behind the Figures ceremony opened at about 9:35 a.m.

ALSO READ: Dangote Refinery opens order book for Africa’s largest IPO as listing set for November

Dignitaries at the event included the CEO of Dangote Refinery, David Bird; Vice President, Oil & Gas and Fertiliser, Dangote Group, Edwin Devakumar; CEO of Nairobi Stock Exchange, Frank Nwiti; and Chairperson of Botswana Stock Exchange, Neo Mooki.

Others were the Ooni of Ife, Oba Adeyeye Ogunwusi; founder and chairman of Zenith Bank, Jim Ovia; immediate past President of African Export-Import Bank, Benedict Okey Oramah; and CEO of Zenith Bank, Adaora Umeoji.

Mr Dangote said the IPO is part of efforts to deepen financial inclusion in Africa and industrialise the continent under the African Continental Free Trade Area (AfCFTA).

The $1.6 billion offer is the largest IPO ever launched on the African continent.