The Dangote Petroleum Refinery and Petrochemicals FZE has set the minimum subscription for its proposed initial public offering (IPO) at 10 ordinary shares valued at N5,250.
President and Chief Executive Officer of Dangote Group, Aliko Dangote, disclosed this on Monday in Lagos during a signing ceremony for the proposed share offering.
Dangote said the IPO would comprise 4.1 billion ordinary shares, each with a nominal value of $0.000013, offered at N525 per share.
He said the company expects to raise slightly above N2 trillion through the offering, with the proceeds to be used to expand the refinery.
“In this IPO, we intend to raise just a bit more than N2 trillion, which I’m sure is too small, at an offer price of N525 naira, with a minimum subscription of only 10 shares to fund our expansion of the refinery,” he said.
According to Dangote, the offering was designed not only to mobilise funds for the refinery’s expansion but also to enable a wide range of Nigerians to acquire shares in the business.
He listed drivers, cooks, domestic workers, managers and other members of the public among those who would be able to participate in the IPO.
“Drivers, our cooks, our servants, our managers, and everybody,” he said, explaining that the offering would provide Nigerians with an opportunity to own a stake in the refinery.
Dangote added that investing in the company could also allow subscribers to build long-term savings through share ownership.
The proposed IPO is expected to raise more than N2 trillion, with the funds earmarked for the expansion of the Dangote refinery.
