Kenya has approved a Global Depositary Receipt structure that will enable eligible Kenyan investors to participate in the ongoing Dangote Petroleum Refinery and Petrochemicals IPO in Nigeria.
The approval was granted by Kenya’s Capital Markets Authority after a Short Form Prospectus was submitted by Renaissance Capital Kenya Limited for the proposed GDR arrangement.
The News Chronicle reports that Renaissance Capital Kenya will manage custodial arrangements for investors, while working with its Nigerian affiliate, Renaissance Capital Africa, to participate in the Dangote Refinery share offer.
READ MORE: Dangote Foundation Offers Students Free Shares In Refinery IPO
After the Nigerian offer closes and allocations are made, the GDRs are expected to be listed on the Nairobi Securities Exchange. The listing of the Global Depositary Receipts will require the approval of Nigeria’s Securities and Exchange Commission as well as the fundraising and allocation of shares.
The Dangote Refinery IPO opened on September 14 and will close on October 13. It entails 4.1 billion shares and a price of N525 per share, raising about N2.15 trillion.
The GDR structure will enable Kenyan investors to participate in the investment, further deepening the regional market integration between Kenya and Nigeria.
