The Dangote Petroleum Refinery and Petrochemicals FZE has set N5,250 as the minimum amount Nigerians can invest in its proposed Initial Public Offering, with investors allowed to purchase as few as 10 ordinary shares.
The minimum subscription was announced by the President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, on Monday during the signing ceremony for the refinery’s IPO in Lagos.
The event was held at Eko Hotel and Suites, Victoria Island, Lagos, where details of the proposed offer were unveiled as the company moves to raise fresh capital for the expansion of its refinery operations.
Under the offer, 4.1 billion ordinary shares will be made available to investors at N525 per share, with the company targeting slightly above N2tn from the exercise.
Dangote said the capital would primarily support the planned expansion of the refinery, while also creating an opportunity for Nigerians from different income groups to acquire shares in the massive industrial project.
He said the decision to keep the entry level low was aimed at ensuring that the offer was not restricted to wealthy investors.
According to him, workers and ordinary Nigerians, including drivers, cooks and other employees, should have the opportunity to own part of the business.
Dangote described the exercise as an “IPO for the people”, saying shareholders would also have the opportunity to use their investment as part of their long-term savings and wealth-building plans.
The public offer, when completed, is expected to broaden Nigerian participation in the ownership of the refinery while providing the company with funds to increase its production and expand its operations.