The Securities and Exchange Commission has given Dangote Petroleum Refinery and Petrochemicals FZE the green light to proceed with its Initial Public Offering, potentially enabling the company to raise about N2.15tn from Nigeria’s capital market.
The approval, disclosed by the Dangote Group on Friday, was communicated to the Lead Issuing House, Vetiva Advisory Services Limited, in a letter signed by SEC Director of Securities and Investment Services, Abdulkadir Abbas.
Under the proposed offer, 4.1 billion ordinary shares will be sold at N525 each, with the transaction expected to generate approximately N2.15tn if fully subscribed.
The commission has also registered the refinery’s existing 120.13 billion ordinary shares, while approving its draft offer documents and allowing the company to proceed with the completion board meeting and signing ceremony.
“The regulatory approval clears the refinery’s draft offer documents and authorises the company to proceed with its completion board meeting and signing ceremony, marking a significant milestone in the IPO process,” the statement said.
The Dangote Group said the approval would give investors an opportunity to acquire an interest in the refinery while supporting the growth and depth of Nigeria’s capital market.
“The SEC’s clearance represents another major step in the evolution of Dangote Petroleum Refinery, opening investment opportunities in one of Africa’s most strategic industrial assets and further strengthening Nigeria’s capital market,” the statement said.
Situated in Ibeju-Lekki, Lagos, the 2,635-hectare Dangote Refinery and Petrochemicals Complex houses an integrated refining and petrochemical operation.
The facility currently has a refining capacity of 700,000 barrels per day and a polypropylene plant capable of producing 900,000 tonnes annually. A dedicated 435-megawatt power plant supplies its energy needs.
Once operating at full capacity, the refinery is expected to meet Nigeria’s domestic refined petroleum product requirements while supplying international markets. An ongoing expansion is planned to raise capacity to 1.4 million barrels per day, potentially making it the world’s largest refinery.
Its supporting infrastructure includes a marine facility with five Single Point Moorings, while the integrated port has quays designed for Panamax vessels, liquid cargo and roll-on/roll-off operations.
The complex also has 177 storage tanks with a combined capacity of 4.742 billion litres and uses processing technology designed to comply with international and Nigerian environmental standards.
The SEC approval marks a major milestone in Dangote Refinery’s plans to attract wider investor participation and secure fresh capital through the Nigerian capital market.
