Dangote IPO attracts $4.1 billion in share applications
By the AFREEQUE newsroom, based on Business Day Nigeria
The IPO of Dangote Petroleum Refinery received around 5.85 trillion naira ($4.1 billion) in share applications, nearly three times the amount targeted. According to Bloomberg, citing sources close to the operation, this level of interest makes it one of the largest share fundraisings in Africa, although the amount actually raised will depend on the shares allocated.
The public offering of the Dangote refinery, in Nigeria, received share applications of around 5.85 trillion naira, or $4.1 billion, nearly three times the amount the group planned to raise, according to Bloomberg, which cites sources close to the operation.
This level of demand makes the operation one of the largest share fundraisings ever carried out in Africa. The amount of applications does not correspond to the funds actually raised: these will depend on the shares allocated to investors in the final allocation.
The future value of the share will depend on the refinery’s financial results, its profitability, its cash flows, its dividend policy and its market valuation. This demand comes as the Nigerian stock market gained 2,320 billion naira on 10 November, boosted by Dangote Cement.
