Africa’s richest man Aliko Dangote, Uganda President Yoweri Museveni and Kenyan President William Ruto. PHOTO | PPU
- Dangote Petroleum Refinery is offering nearly 20% of its massive IPO to East African investors, potentially raising to $300.4 million from the region.
- Kenyan investors can now join the $1.6 billion IPO, following approval by Kenya’s Capital Markets Authority for a global depository receipt linked to the offering.
- Renaissance Capital Kenya and other licensed firms are facilitating Kenyan participation by working with their Nigerian counterparts.
- Uganda’s Capital Markets Authority has also approved promotion and sale of Dangote Refinery securities for local investors, expanding access beyond Nigeria.
The refinery, which operates Africa’s largest crude-processing facility in Nigeria, is making almost 20% of the IPO available to investors in the region. The allocation could be worth as much as $300.4 million if the full offer is taken up
Kenyan investors will be able to participate in the refinery’s $1.6 billion IPO after the Capital Markets Authority approved a short-form prospectus for a global depository receipt linked to the offering.
The approval covers a global depository receipt submitted by Renaissance Capital Kenya. The Kenyan firm will work with Renaissance Capital Africa, which is licensed to operate in Nigeria, to facilitate access to the offer.
Kenya’s regulator also approved at least seven other licensed firms working with Nigerian counterparts to help eligible investors participate in the share sale.
The development gives investors outside Nigeria another route into Dangote Refinery’s public offering, which the company has positioned as a major opportunity for African investors.
Uganda has separately opened its market to the offering after the country’s Capital Markets Authority approved the promotion and distribution of Dangote Refinery securities to local investors.
The approval followed an application submitted on behalf of the refinery by Stanbic IBTC Capital.
Dangote Industries launched the IPO in September as part of a plan to raise funds to expand the refinery’s capacity from 700,000 barrels per day to 1.4 million barrels per day.
The company has described the offering as a “people’s IPO,” with the transaction expected to become one of Africa’s largest share sales.
