Dangote Petroleum Refinery has extended its share offer by two weeks. The offer will now close on October 27, instead of October 13. The company says it wants more African investors to take part.
The Securities and Exchange Commission (SEC) approved the extension. The offer opened on September 14.
Why the Offer Was Extended
Aliko Dangote, President of Dangote Group, spoke on Monday. He said the IPO is going well. However, he insisted the extra time is not about raising more money.
Instead, he said the goal is to widen participation. Talks with the Nairobi Stock Exchange have produced what he considers the best way to bring in investors. Now, the company wants to copy that arrangement on other African exchanges.
He also said demand has already passed the original target by three or four times. In his words, the focus is on the number of people who get a chance to own shares.
What the Subscription Figures Mean
The offer covers 4.1 billion ordinary shares at N525 each. That puts its total value at N2.1525tn. A fourfold subscription would therefore come to about N8.61tn.
This figure is only an estimate, though. It comes from multiplying the offer value by four. The company has not stated the exact amount subscribed. It has also not confirmed that the fourfold figure applies to the full value of the offer.
How the Extra Time Will Be Used
The company plans to widen access across African markets. Those efforts include more distribution channels and unsponsored depository receipt programmes. These programmes are designed to make cross-border investment easier.
The extra time will also help investors who are still completing the process. Many need to open accounts, verify their identity and meet other regulatory requirements before they can subscribe.
What the Refinery’s CEO Said
David Bird, Managing Director and CEO of Dangote Petroleum Refinery and Petrochemicals FZE, welcomed the SEC’s approval. He said the extension will let more investors across the continent share in the company’s future growth. According to him, the aim from the start has been to let as many people as possible take part.
Shares in the refinery remain available at N525 each until the new deadline.
