Africa’s largest refinery’s $1.6 billion IPO opens to Kenyan investors as Dangote expands East Africa push

The Capital Markets Authority of Kenya said that it had approved the global depository receipt submitted by Renaissance Capital (Kenya).

The Kenyan firm will work with Renaissance Capital Africa, which is licensed in Nigeria, to facilitate participation in the offer, according to Reuters.

The approval opens the refinery’s much-anticipated share sale to eligible investors in Kenya, extending the reach of an offering that has already attracted strong interest from investors in Nigeria.

Dangote Industries launched the IPO in September as part of plans to raise funds to double the refinery’s capacity from 700,000 barrels per day to 1.4 million barrels per day. The company has described the offer as a “people’s IPO”, with the transaction expected to become Africa’s largest share sale.

The Kenyan regulator also approved at least seven other licensed firms working with their Nigerian counterparts to help eligible Kenyan investors access the offer.

Interest in the IPO has been strong since it opened, with more than $7 million, or about N10 billion, reportedly committed by thousands of investors within the first hour.

The offer comprises 4.1 billion new ordinary shares priced at N525 each, with investors able to buy a minimum of 10 shares for N5,250. The offer is scheduled to close on October 13.

The IPO comes as Dangote expands its ambitions across East Africa. The group is planning a $16 billion, 700,000-barrel-per-day refinery near Lamu, Kenya, aimed at supplying the regional energy market.

Kenya and Rwanda have also been offered a combined 30% stake in the planned refinery, with payment options spread over four years.