Dangote Refinery will open the order book for its initial public offering to retail investors on 14 September, effectively kickstarting the $1.5 billion public share sale, said to be the continent’s biggest ever, Reuters reported Friday, citing two sources who have close knowledge of the move.
Pricing will commence at any moment now at N525 per share ($0.40), with 4.1 billion shares up for subscription, the report added, noting that the sources spoke on the understanding that their identities will not be disclosed.
The crude processing plant, which holds the distinction of being the world’s largest single-train refinery, will have the latitude to sell 15 per cent of the offer size in addition to the total number of shares up for grabs in the event the transaction is oversubscribed, a source was quoted as saying.
The facility, owned by Africa’s richest man, Aliko Dangote, is ready to double nameplate capacity to 1.4 million barrels per day (bpd).
Financing will be provided by proceeds from both the planned equity sale and a private placement held in July, which raised $2.5 billion from institutional investors and high-net-worth individuals. It was 270 per cent oversubscribed.
