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The Dangote Petroleum Refinery Initial Public Offer (IPO) will be the first public offer in Nigeria that retail investors can subscribe to entirely through digital channels, the Chief Executive Officer of Vetiva Capital Management Limited, Chuka Eseka, has said.
Eseka disclosed this on Monday at the signing ceremony for the refinery’s IPO, describing the digital-first approach as a deliberate move to widen access for Nigerians across the country.
Eseka disclosed that upon successful completion, the offering will make Dangote Petroleum Refinery the largest single listed company on the Nigerian Exchange (NGX), reinforcing the significance of the offer’s digital-first structure in achieving broad-based participation.
What they are saying
According to Eseka, investors will be able to participate through several digital and traditional channels, including bank apps, fintechs apps, and POS terminals.
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- “This will be the first offer in Nigeria that retail investors will truly have to subscribe digitally, utilising a wide array of platforms… and this was deliberately tailored to ensure that every single Nigerian, wherever you are, you have the opportunity to subscribe for this offer,” he said.
- “As you open your bank apps to transfer money, you will see an option to subscribe for Dangote Refinery shares,” he said.
He added that digital finance platforms will also carry subscription options for retail participants.
Digacross structure to “rewrite standards” for Nigerian capital market
Eseka commended the team from Chapel Hill Denham, the joint issuing house, for developing the digital infrastructure underpinning the offer’s distribution, describing it as a landmark shift for Nigeria’s capital market.
- “The transaction will rewrite standards on how we document and structure capital market transactions in Nigeria. It will also, more importantly, set new standards and redefine standards of how we distribute capital market transactions in Nigeria,” he said.
Echoing remarks made earlier by Dangote Group Chairman, Aliko Dangote, Eseka said the digital distribution model was central to making the offer truly inclusive.
- “We had to deliberately tailor it to ensure that this would be truly, as the Chairman said, the IPO for the people,” he said.
Eseka added that Nigeria’s capital market infrastructure was equipped to handle a high volume of digital subscribers, supporting the offer’s goal of reaching as many Nigerians as possible.
- “The philosophy of this offer is to open it up to as many Nigerians as possible… and the kind of infrastructure the Nigerian capital market has, it can absorb as many subscribers as possible,” he said.
Get up to speed
Eseka noted that the offer allows Nigerians to participate with a minimum subscription of just 10 units at N525 each, translating to N5,250, echoing Dangote’s earlier comments.
The proposed offer comprises 4.1 billion ordinary shares at an offer price of N525 per share, with the company targeting N2.15 trillion from the IPO to support the expansion of the refinery.
Dangote had said on Monday that the planned fundraising was not only about securing capital for the refinery’s expansion, but also about giving more people an opportunity to participate in its ownership.
What you should know
The signing ceremony comes after the Securities and Exchange Commission (SEC) approved the initial public offering, clearing the way for what is expected to become Africa’s biggest-ever share sale.
The SEC also registered 120.13 billion existing ordinary shares in the refinery, implying a valuation of about $47 billion based on Reuters’ calculations.
The 650,000-barrel-per-day facility, located on the outskirts of Lagos, was built at an estimated cost of $20 billion. Since commencing operations, it has become a major force in Nigeria’s fuel market and has expanded its exports of refined products to markets across Africa and Europe.
