Aliko Dangote says subscriptions have exceeded the original fundraising target by more than threefold, as the company extends its share offer deadline to October 27 to attract more African investors…..
Dangote Petroleum Refinery’s public share offer has reportedly attracted subscriptions several times above its initial fundraising target, with a fourfold subscription of the N2.15tn offer value translating to approximately N8.61tn.
President of Dangote Group, Aliko Dangote, disclosed on Monday that subscriptions had exceeded the amount the company initially intended to raise by more than three or four times.
He said the refinery had extended the closing date of its share offer by two weeks to provide more African investors with an opportunity to participate.
However, the company has yet to disclose the exact amount subscribed or confirm whether the fourfold figure applies to the entire offer value.
The initial public offer comprises 4.1 billion ordinary shares priced at N525 each, giving it a total value of N2.1525tn if fully subscribed. Applying a fourfold multiple to that amount produces an estimated N8.61tn in subscriptions, although this has not been confirmed by the company.
In a statement issued by the Dangote Group on Monday, Dangote said the extension was not intended to raise additional funds but to widen participation in the business across Africa.
“The IPO is going very well. We will extend the closing date because we want more of our African brothers and sisters to participate. Following our discussions with the Nairobi Stock Exchange, we have identified what we believe is the best way to facilitate participation. We are now trying to replicate that arrangement with other African exchanges to ensure wider participation,” he said.
Explaining the subscriptions received so far, Dangote added, “But when it comes to the amount of money we originally intended to raise, we have already received subscriptions amounting to more than three or four times that figure. So, it is not about the amount of money. It is about the number of people who will have the opportunity to participate in this offer. That means quite a lot to us.”
The offer, which opened on September 14, was initially scheduled to close on October 13. However, the Securities and Exchange Commission approved an extension until October 27.
The company said the additional two weeks would enable it to broaden access to the offer across African markets through expanded distribution channels and unsponsored depository receipt programmes designed to facilitate cross-border investments.
It added that the extension would give prospective investors more time to complete account-opening processes, identity verification and other regulatory requirements needed to participate.
The Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals FZE, David Bird, said the extension would allow more investors across the continent to share in the company’s future growth.
“We welcome the SEC’s approval of the extension, which will give more investors across Africa the opportunity to participate in the Offer. From the outset, our ambition has been to enable as many people as possible to participate in the IPO and share in DPRP’s future growth. The additional time will help us extend that opportunity to more investors across Africa,” he said.
The public offer allows investors to acquire shares in the refinery at N525 each.
