Dangote refinery IPO falls short of 10 million-investor target
By the AFREEQUE newsroom, based on Business Day Nigeria
Aliko Dangote, chairman of Dangote Group, says the IPO of his refinery did not reach its target of 10 million investors. The offering of 4.1 billion shares at 525 naira, extended until 27 October, nevertheless attracted several million participants, according to his remarks in Lagos.
Aliko Dangote, chairman of Dangote Group, said the IPO of his refinery had not reached its target of 10 million investors, citing a tight timetable and difficulties accessing the offering. He nevertheless said participation was in the millions, at the 25th annual WIMBIZ conference in Lagos, according to Business Day Nigeria.
The offering, called “The People’s IPO”, involved 4.1 billion shares at 525 naira each, with a minimum subscription of 10 shares, or 5,250 naira. It opened on 14 September before being extended until 27 October. Dangote said the final number of investors had yet to be established.
More than two million investors had subscribed through digital channels before the close, according to Reuters. Orders from Nigerian retail and institutional investors reached about 6.4 trillion naira, nearly three times the targeted size of the offering.
Dangote compared this participation with that of previous major offerings, citing about 200,000 investors for the GTBank offering and fewer than 900,000 for Safaricom in Kenya. He also mentioned about five million participants for Saudi Aramco worldwide. He had previously said applications came from 120 countries, including all 54 African countries, according to Business Day Nigeria.
The Dangote refinery offering had been presented as a way of broadening ownership beyond institutional investors and wealthy individuals. The operation comes amid a sequence in which Dangote’s IPO had already been reported as attracting investors from 200 countries on 7 November. Dangote IPO attracts investors from 200 countries.
