Dangote Refinery to Extend IPO by Two Weeks to Add More Nations

Aliko Dangote plans to extend the deadline for applications for the initial public offering in his Nigerian refinery by two weeks as Africa’s richest man seeks to provide investors in more countries access to the continent’s biggest listing to date, according to people familiar with the matter.

The offering that opened in mid-September was set to close Tuesday will now be extended to Oct. 27, said the people, who asked not to be identified because the information is still private. Decisions are subject to the approval of the Securities and Exchange Commission in Nigeria, said the people.

The Dangote Petroleum Refinery & Petrochemicals FZE IPO has seen significant demand, with exchanges across Africa in talks with the company over structures to provide them access to the listing that will value the business at close to $50 billion, said the people.

A Dangote Refinery spokesman didn’t answer a call seeking comment while a spokesperson for the SEC didn’t respond immediately.

Global depositary receipts have already been made available to investors in Kenya and Botswana, said the people.

The proposed extension would allow more time to finalize cross-border arrangements and ensure investors in a wider range of African markets can participate in the share sale.

Read More About the Dangote Refinery Listing:
Dangote Refinery Offers East Africa Almost 20% of IPO Shares Why Dangote’s Refinery IPO Is a Big Deal for Africa: Explainer

The offering is being positioned as a pan-African transaction, reflecting Dangote’s ambition to create a shareholder base that extends beyond Nigeria and includes institutional and retail investors across the continent.

The deal could act as a catalyst to deepen African capital markets and offers investors exposure to the 700,000-barrel-a-day refinery that is already one of the world’s largest energy projects.

Some 4.1 billion shares in the Dangote refinery are on offer at 525 naira ($0.40) each. That equates to about 3% of the company. It has regulatory approval to sell up to 30% more equity should there be sufficient demand, meaning the firm could raise as much as $2.1 billion.

The listing is a test of the ability of African exchanges and regulators to support large-scale equity offerings. The effort to create access routes for investors from multiple countries and through several structures could also set a precedent for broader capital-market integration across the continent.

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