Amanze Chinonye
The initial public offering (IPO) of Nigerian billionaire Aliko Dangote’s oil refinery will be extended by 10 days to allow investors from other African countries to participate, a company executive and an adviser to the deal told Reuters.
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The offer, which opened on September 14 and was scheduled to close on October 13, aims to raise funds to finance the refinery’s expansion. An official announcement on the revised timetable was expected on Monday, the sources said.
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The refinery is offering 4.1 billion ordinary shares at 525 naira apiece, with the sale targeting about 2.15 trillion naira, or approximately $1.6 billion. Proceeds will help fund plans to increase the facility’s processing capacity from 700,000 barrels per day to 1.4 million barrels per day.
The offering has drawn attention to the difficulties investors face when seeking opportunities across Africa’s fragmented capital markets. Although the refinery’s share sale is open to public investors in Nigeria, prospective subscribers in other countries must comply with local securities regulations and use eligible brokerage and subscription arrangements.
Investors in Kenya and Botswana have expressed interest in the offering, Dangote told Reuters last week. Uganda’s Capital Markets Authority has also approved domestic participation, illustrating efforts to extend access to the sale beyond Nigeria, although eligibility and subscription procedures vary by jurisdiction.
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The company has set a target of attracting 10 million retail investors. Chief Executive David Bird said last week that the target exceeded twice the number of retail subscribers recorded in Saudi Aramco’s 2019 initial public offering.
The refinery’s planned capacity expansion is expected to strengthen its ability to process crude oil and produce refined petroleum products. The additional fundraising would support that expansion, although the final amount raised will depend on investor subscriptions and the terms of the offering.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
