Dangote Refinery IPO offers investment opportunity to Nigerians — FCMB

Nigerians can invest in Dangote Petroleum Refinery and Petrochemicals FZE with a minimum subscription of N5,250 under an initial public offering launched Monday. The company is offering 4.1 billion ordinary shares at N525 each.

FCMB Group Chief Executive, LadiBalogun, said the offer gives Nigerians access to a world-scale business while demonstrating the growing reach of the country’s capital market.

“It presents an opportunity for every Nigerian to experience the benefits of investing in world-class and world-scale businesses that would otherwise be inaccessible,” Balogun said at the opening gong ceremony and ‘Facts Behind the Offer’ presentation at the Nigerian Exchange in Lagos.

The minimum subscription is 10 shares, allowing individual investors to participate with N5,250.

“This is an IPO for the people,” President of Dangote Industries, Aliko Dangote, said, adding, “We want Nigerians across various segments, including drivers, cooks, traders, employees and managers, to have an opportunity to own a stake in the refinery.”

According to Balogun Nigeria’s capital market was deepening as it attracted retail, high-net-worth, institutional and international investors through a widening range of channels.

He stated further: “Retail investors are buying shares on their mobile phones through fintechs.

“High-net-worth individuals and institutional investors such as pension funds are bringing depth to the market, while international investors are bringing scale.”

He said the breadth of participation demonstrated the market’s capacity to help credible Nigerian companies raise capital at scale. Balogun also described the refinery as largely insulated from the macroeconomic and currency risks associated with the Nigerian economy.

“The number of such companies on our Exchange is growing,” he said. “This indicates the potential and direction of the Nigerian economy.”

FCMB Group is participating in the transaction through three operating companies, including FCMB Capital Markets as a joint issuing house, CSL Stockbrokers as a stockbroker to the issue, and First City Monument Bank is a receiving bank and distribution agent.