The refinery, which operates Africa’s largest crude-processing facility in Nigeria, is making almost 20% of the IPO available to investors in the region. The allocation could be worth as much as $300.4 million if the full offer is taken up, according to Bloomberg.
Kenyan investors will be able to participate in the refinery’s $1.6 billion IPO after the Capital Markets Authority approved a short-form prospectus for a global depository receipt linked to the offering.
The approval covers a global depository receipt submitted by Renaissance Capital Kenya. The Kenyan firm will work with Renaissance Capital Africa, which is licensed to operate in Nigeria, to facilitate access to the offer.
Kenya’s regulator also approved at least seven other licensed firms working with Nigerian counterparts to help eligible investors participate in the share sale.
The development gives investors outside Nigeria another route into Dangote Refinery’s public offering, which the company has positioned as a major opportunity for African investors.
Uganda also approves Dangote IPO
Uganda has separately opened its market to the offering after the country’s Capital Markets Authority approved the promotion and distribution of Dangote Refinery securities to local investors.
The approval followed an application submitted on behalf of the refinery by Stanbic IBTC Capital.
Dangote Industries launched the IPO in September as part of a plan to raise funds to expand the refinery’s capacity from 700,000 barrels per day to 1.4 million barrels per day.
The company has described the offering as a “people’s IPO,” with the transaction expected to become one of Africa’s largest share sales.
Source: africa.businessinsider.com
