Aliko Dangote has hinted that more shares would be available for subscription in the ongoing Dangote Refinery IPO, if the demand continues to persist.
The billionaire business mogul described the overwhelming subscription as “enormous”, saying the exercise has shown how deep Nigeria’s capital market is.
The IPO, which started on September 14 and is due to close on October 13, comprises 4.1 billion shares being sold at N525 per share, and is expected to raise about N2.15 trillion.
The News Chronicle reports that the offer has been fuelled by frenzied activity in banks, fintechs and investment platforms, with early transactions indicating robust demand from retail investors.
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Dangote said his intention was for ordinary Nigerians and Africans to be able to own part of the refinery and to profit from its success.
The refinery’s Vice President, Oil and Gas, Devakumar Edwin, said about half of its current production is being exported, adding that the facility is already profitable.
The money raised from the IPO will be used to fund the expansion of the refinery, as well as to boost its export capacity.
Dangote is also looking to build a 700,000 barrels per day refinery in Kenya, valued at $16 billion, and has offered equity stakes to a number of African governments.
With the October 13 deadline fast approaching, the final subscription figures could decide whether Dangote Industries increases the number of shares on offer to investors.
