Kenyan investors can now participate in the Initial Public Offering of Dangote Petroleum Refinery and Petrochemicals after the country’s Capital Markets Authority approved the offer for eligible investors.

The approval allows investors in Kenya to buy into the Nigerian refinery through Global Depository Receipts, which represent shares in a foreign company and can be traded in the market where they are listed.

The prospectus was submitted by Renaissance Capital Kenya Limited, which will work with its Nigerian affiliate, Renaissance Capital Africa, to manage the investment process and custody arrangements for funds received from Kenyan investors.

Following the completion of the IPO and allocation of shares, the GDRs are expected to be structured for listing on the Nairobi Securities Exchange. The proposed listing will, however, require approval from Nigeria’s Securities and Exchange Commission.

Dangote Refinery opened its IPO on September 14, with the offer scheduled to close on October 13. The share sale has attracted interest from investors across Africa seeking an opportunity to invest in the Nigerian refinery.

The approval in Kenya comes days after Dangote Group and the Kenyan government broke ground for a planned East African oil refinery in Lamu on September 30.

The Kenyan regulator clarified that the IPO does not cover the proposed Lamu refinery. The current offer applies only to Dangote Petroleum Refinery and Petrochemicals FZE, based in Nigeria.

The Capital Markets Authority also warned that its approval should not be interpreted as a recommendation to invest. It advised potential investors to study the prospectus and seek independent professional advice before committing their funds.