The Dangote Petroleum Refinery and Petrochemicals FZE is set to open its highly anticipated public share offer on September 14, giving Nigerians an opportunity to take ownership in one of the country’s biggest industrial projects.
The offer consists of 4.1 billion ordinary shares priced at N525 each. Investors can start with just 10 shares, requiring a minimum investment of N5,250.
The company is seeking about N2.15 trillion from the offering, with part of the proceeds expected to support an expansion that could raise the refinery’s processing capacity to 1.4 million barrels per day.
For prospective investors, participation will require going through the formal Nigerian capital market system.
The first requirement is a stockbroking account. Anyone without one will need to register with a stockbroker licensed by the Securities and Exchange Commission and the Nigerian Exchange. Most brokers provide online registration and will request standard identification and Know-Your-Customer information.
Investors should verify that their chosen broker is properly licensed before transferring money or submitting an application.
A Central Securities Clearing System account is also required because shares purchased through the Nigerian capital market are held electronically. A broker can usually arrange a CSCS account for a new investor or connect an existing account.
Once the brokerage and CSCS arrangements are in place, investors will need to complete the required verification process. The exact documents and procedures may vary between brokers.
The next step is to fund the investment account. At the offer price of N525 per share, 10 shares will cost N5,250. Anyone intending to purchase more should check the final offer documents for the applicable application increments and other conditions.
Investors should then wait for the official opening of the offer on September 14. The subscription is scheduled to remain open until October 13, 2026.
When the offer opens, applications should be made only through the stockbrokers and other channels officially approved in the offer documents. Investors should be cautious of individuals or platforms requesting payments outside verified channels.
After the subscription period closes, investors will have to wait for the share allotment. If demand exceeds the number of shares available, applicants may receive fewer shares than they requested. Any applicable refund for unallocated funds will be handled according to the terms of the offer.
Successful investors will have their allotted shares credited electronically to their CSCS accounts.
Once the refinery’s shares are admitted for trading on the Nigerian Exchange, shareholders will be able to monitor their investment through their brokers. They can retain the shares as a long-term investment or sell them through the exchange at the prevailing market price.
With the minimum entry point set at N5,250, the offer is designed to make participation possible for a wide range of investors. However, prospective shareholders are advised to study the final prospectus and verify all application details before committing their money.
