Dangote Petroleum Refinery and Petrochemicals has prolonged its ongoing $1.6 billion preliminary public providing (IPO), touted because the biggest-ever in Africa, by two weeks to allow extra participation throughout Africa, following sturdy, continent-wide curiosity, the corporate stated on Monday.
“The IPO is going very well. We will extend the closing date because we want more of our African brothers and sisters to participate,” the corporate stated in a press release.
“Following our discussions with the Nairobi Stock Exchange, we have identified what we believe is the best way to facilitate participation. We are now trying to replicate that arrangement with other African exchanges to ensure wider participation,” it added.
The public share sale, which is concentrating on retail traders, opened for subscription on 14 September and was on account of shut on 13 October, earlier than the extension, will enable it to run by means of 27 October.
According to the refinery, majority-owned by Africa’s richest man, Aliko Dangote, the Securities and Exchange Commission has given its assent to the extension.
The proceeds of the IPO will finance the enlargement of the 700,000 barrel-per-day crude refining plant, located on the outskirts of Lagos, which is predicted to double the present capability by 2030.
A complete of 4.1 billion shares are up on the market at N525 per unit, with a minimal subscription of 10 shares. The IPO has a inexperienced shoe choice, which permits for a further 30 per cent of the shares on provide to be offered within the occasion it’s oversubscribed.
In July, a non-public placement heralding the IPO was 270 per cent oversubscribed although the unique plan was to boost $2.5 billion.
Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group, underwrote and funded $600 million of the non-public placement.
The IPO attracted billions of naira inside minutes of its opening, whereas numerous buying and selling platforms, together with Bamboo and Cowrywise, skilled downtime on the primary day of the provide, overwhelmed by subscription site visitors.
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Mr Dangote stated within the Monday assertion that the IPO has already acquired subscriptions of “more than three or four times” the quantity it set out initially to boost.
According to the corporate, the extension would bolster efforts to broaden entry to the provide throughout the continent, together with by means of the enlargement of distribution channels and facilitating cross-border funding.
It acknowledged that the transfer would give potential traders extra time to finish the account-opening course of, identification verification and different regulatory preconditions for partaking within the IPO.
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