Dangote Refinery Extends IPO Deadline

Nigeria’s Dangote Petroleum Refinery and Petrochemicals has extended its initial public offering (IPO) deadline by two weeks to October 27, following strong investor interest and efforts to attract more buyers across Africa.

The company announced the extension on Monday after Nigeria’s Securities and Exchange Commission (SEC) approved the move. The share sale opened on September 14 and was originally scheduled to close on October 13.

Reuters had earlier reported the extension of the offer, which is expected to become Africa’s largest share sale. The refinery, owned by Africa’s richest person, Aliko Dangote, is seeking to expand ownership of its 700,000-barrel-per-day facility. The offer targets up to 10 million retail investors in Nigeria and other African countries.

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According to the company, the extra two weeks will support efforts to reach investors in more African markets. It plans to expand distribution channels and make cross-border investment easier. The extension will also give prospective investors more time to open accounts, complete identity checks, and meet other regulatory requirements.

However, the offering faces challenges outside Nigeria. Its prospectus states that the share sale is not registered as a public offering in other countries. As a result, investors must follow local rules or use a limited number of eligible online investment platforms.

The situation highlights the challenges facing cross-border investment in Africa, where differences in capital market rules can make it harder for investors to buy shares across national borders. The IPO aims to raise about $1.6 billion. The amount could rise to $2.1 billion if an over-allotment option is exercised. The funds will help finance the expansion of the Lagos-based refinery.

The refinery began processing crude oil in early 2024. It plays a key role in Nigeria’s efforts to reduce fuel imports and become a net exporter of refined petroleum products.

The share sale is also expected to test demand among retail investors across Africa for ownership in a major industrial company.

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Deborah Akwa

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