Kenyan investors will be able to participate in Dangote Petroleum Refinery & Petrochemicals’ Nigerian initial public offering through global depository receipts (GDRs), Kenya’s Capital Markets Authority said on Monday, opening a new channel for cross-border investment in Africa’s refining sector, Prime Business Africa reports.
The CMA approved a short-form prospectus submitted by Renaissance Capital (Kenya) Ltd, enabling eligible Kenyan investors to participate in the IPO, which opened on Sept. 14 and is scheduled to close on Oct. 13.
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Under the arrangement, Renaissance Capital Kenya will establish custodial arrangements for investors’ funds in collaboration with Renaissance Capital Africa, which is licensed in Nigeria. Following the close of the IPO and confirmation of the allocation of refinery shares, Renaissance Capital Kenya will structure GDRs representing the underlying shares for listing on the Nairobi Securities Exchange.
The proposed NSE listing remains subject to relevant approvals from Nigeria’s Securities and Exchange Commission. The CMA has authorised Renaissance Capital Kenya to seek the listing, subject to a successful fund raise and the allocation of sufficient shares to facilitate creation of the GDRs.
The transaction is the first of its kind since Kenya issued policy guidance on global depository receipts and global depository notes, the CMA said, describing the approval as an opportunity for Kenyan investors to access a major African public offering.
The regulator stressed that the IPO covers only Dangote Petroleum Refinery & Petrochemicals FZE in Nigeria and does not include the proposed Dangote East African Petroleum Refinery and Petrochemicals project in Lamu County, Kenya.
The clarification is significant because Dangote is pursuing the separate Lamu refinery project, meaning participation in the Nigerian IPO does not give investors an interest in the planned Kenyan facility.
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Several other Kenyan investment firms are also facilitating client participation in the Nigerian IPO through arrangements with authorised transaction parties in Nigeria, the CMA said.
They include CPF Capital & Advisory, SBG Securities/Stanbic Bank, Francis Drummond & Co Ltd, National Bank of Kenya/Access Bank, Sterling Capital, Kestrel Capital and AXYS Investment Bank.
The CMA said its approval of the GDR prospectus should not be construed as an investment recommendation. It urged prospective investors to study the prospectus and seek independent professional advice, noting that GDRs have features that differ from conventional securities traded on the NSE.
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.



