Dangote Petroleum Refinery’s public offer has reportedly attracted subscriptions several times above its original fundraising target, with a fourfold subscription of the N2.15tn offer value translating to about N8.61tn.
President of Dangote Group, Aliko Dangote, disclosed on Monday that subscriptions had exceeded the amount the company originally intended to raise by more than three or four times, as the refinery extended the closing date of its share offer by two weeks to attract more African investors.
The company has not, however, disclosed the exact amount subscribed or confirmed that the fourfold figure applies to the full value of the offer.
The IPO comprises 4.1 billion ordinary shares priced at N525 each, giving the offer a total value of N2.1525tn if all the shares are subscribed.A calculation that multiplies the N2.1525tn offer value by four puts potential subscriptions at N8.61tn. This represents an estimate based on the offer value and Dangote’s remarks.
In a statement by the Dangote Group on Monday, Dangote was quoted as saying that the extension was not driven by a need to raise more money but by the company’s desire to give more Africans an opportunity to own shares in the business.
“The IPO is going very well. We will extend the closing date because we want more of our African brothers and sisters to participate. Following our discussions with the Nairobi Stock Exchange, we have identified what we believe is the best way to facilitate participation. We are now trying to replicate that arrangement with other African exchanges to ensure wider participation,” he said.Explaining the level of subscriptions received, Dangote said, “But when it comes to the amount of money we originally intended to raise, we have already received subscriptions amounting to more than three or four times that figure. So, it is not about the amount of money. It is about the number of people who will have the opportunity to participate in this offer. That means quite a lot to us.