The Dangote Petroleum Refinery is aiming to attract as many as 10 million investors when its N2.15tn initial public offering opens next week, a target that could set a new record for retail participation in Nigeria’s capital market.

The share sale will begin on September 14 and close on October 14, with the refinery expected to be listed on the Nigerian Exchange’s main board in November.

The offer consists of 4.1 billion ordinary shares priced at N525 each. Retail investors can participate with a minimum of 10 shares, meaning an investment of N5,250 would be enough to become a shareholder.

Transaction advisers said the IPO has been designed to make participation easier for ordinary Nigerians through digital platforms. Subscriptions will be available through participating banks, fintech companies, stockbrokers and other approved financial institutions, removing the need for investors to visit physical offices.

Managing Director of Vetiva Capital Management Limited, Chuka Eseka, said the electronic distribution model was designed to expand access to the capital market and allow Nigerians to invest from virtually anywhere.

The 10 million investor target is significantly higher than Nigeria’s current retail participation record of about 131,000 investors, according to the advisers.

Dangote Group President, Aliko Dangote, said attracting a large number of shareholders was more important to the company than maximising the amount of money raised through the offer.

He explained that the refinery could raise additional funds through other channels if that were the main objective, but the IPO was deliberately structured to bring a wider group of Nigerians into the ownership of the business.

Dangote said the company hopes to attract shareholders from across Africa and other parts of the world, including workers, drivers, managers, entrepreneurs and other ordinary investors.

He added that the wider ownership structure would give more people the opportunity to build long-term wealth by holding shares in one of Africa’s largest industrial projects.

The offer also includes an incentive for eligible retail investors, who may receive up to two additional shares if they meet the specified holding conditions.

Vetiva Advisory Services Managing Director, Olutade Olaegbe, said the offer would operate on a fixed-price basis, with retail subscriptions handled electronically. Qualified institutional investors will also be able to participate through the channels outlined in the offer documents.

The advisers further disclosed that the offer contains a provision allowing the refinery to increase the number of shares sold by up to 30 per cent if demand exceeds the initial offer size, subject to the terms of the transaction.

Although the N2.15tn offer is expected to support the refinery’s capital expenditure programme, the company said its planned expansion is already fully funded.

The refinery’s Chief Executive Officer, David Bird, said the company is working to double its refining capacity from 700,000 barrels per day to 1.4 million barrels per day, with the expansion scheduled for completion in 2028.

The project will also expand the refinery’s range of petroleum products and strengthen its distribution network across West Africa.

Bird said the company’s earlier experience with private investors showed strong demand for ownership of the refinery. The company had initially sought $1bn but received investor interest worth $3.7bn, eventually taking $2.5bn and refunding the remaining $1.2bn.

He said the latest public offer is therefore focused largely on broadening ownership rather than meeting an immediate funding need.

The transaction advisers said the IPO has also received Sharia-compliance certification after an independent review of the refinery’s operations and products, opening the investment to investors seeking opportunities that meet Islamic finance requirements.

With the offer set to open on September 14, Stanbic IBTC Capital Chief Executive, Sotubo Oladele, said the major challenge would now be determining whether the market can deliver the unprecedented 10 million-investor target.