Dangote IPO attracts 5.85 trillion naira in subscriptions
By the AFREEQUE newsroom, based on Punch
The IPO of Nigerian Dangote refinery attracted subscription requests worth about 5.85 trillion naira ($4.1 billion), nearly three times the initial target, with almost four million unique applications. Investors from all 54 African countries participated, according to Bloomberg.
The initial public offering of Dangote Petroleum Refinery, the Nigerian refinery controlled by the Dangote Group, received share purchase requests worth about 5.85 trillion naira, or $4.1 billion. This amount is nearly three times the initial target of $1.6 billion, according to Bloomberg cited by Punch.
Nigerian investors expressed about $1.9 billion in interest, compared with $2.1 billion from international buyers. Requests came from all 54 African countries and the number of individual subscriptions is approaching four million, according to people familiar with the transaction cited by Bloomberg.
The offer is also attracting pension fund managers from Nigeria and South Africa. The Public Investment Corporation, which manages about $220 billion in pension assets for South African state employees, requested a large allocation, while Nigerian managers represent investments covering about 11 million members, Bloomberg reports.
Demand exceeding the number of shares available is prompting Dangote to consider increasing the size of the offer. An additional 30% over-allotment option could notably be exercised to increase the allocation for foreign investors, according to Bloomberg.
