Dangote Refinery will start its initial public offering for retail investors on 14 September. This marks the beginning of a $1.5 billion public share sale, which is said to be the largest in Africa's history. Reuters reported this on Friday, citing two sources familiar with the situation.
The share price will begin at N525 each, which is about $0.40. There are 4.1 billion shares available for subscription. The sources shared this information while wishing to remain anonymous.
The refinery is known as the world’s largest single-train refinery. It can sell an extra 15 percent of the shares if the IPO is oversubscribed, according to one source.
This facility belongs to Aliko Dangote, Africa’s richest man. It is also prepared to increase its capacity to 1.4 million barrels per day.
The money for this project will come from the planned equity sale and a private placement that happened in July. That placement raised $2.5 billion from institutional investors and wealthy individuals. It was 270 percent oversubscribed.
Cross-Border Listing Plans
Dangote Refinery is considering a cross-border listing on the Johannesburg Stock Exchange. This is the main stock exchange in Africa, and it would follow a primary listing in Lagos.
In August, the company stated that a listing in London is not in the works. This is unlike its sister company, Dangote Cement, which is pursuing that option. The company mentioned that any possible listing in London is at least three years away.
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