Prime Highlights-
- Uganda opens Dangote Petroleum Refinery’s $1.6 billion IPO to professional and high-net-worth investors, widening access beyond Nigeria after Kenya’s similar move.
- Dangote targets ₦2.15 trillion from 4.1 billion shares in Africa’s largest share sale to fund the refinery’s planned expansion.
Key Facts-
- Shares sell at ₦525 each, and CEO David Bird targets 10 million retail investors.
- South Africa, Egypt and Ghana have held talks, while Rwanda plans access for eligible investors.
Background-
Uganda has opened its market to Dangote Petroleum Refinery’s $1.6 billion initial public offering (IPO), widening access to the Nigerian share sale beyond its home market.
Uganda’s Capital Markets Authority approved the move for professional and high-net-worth investors, following an application that Stanbic IBTC Capital filed for the refinery. The approval covers the offer of securities under the IPO.
Kenya granted similar access just days earlier. Its Capital Markets Authority approved a short-form prospectus for a global depositary receipt, which lets eligible Kenyan investors join the Nigerian offer and allows licensed Kenyan firms to work with Nigerian counterparts.
Dangote aims to raise about ₦2.15 trillion by selling 4.1 billion shares at ₦525 each. Nigeria’s Securities and Exchange Commission approved the offering, making it Africa’s largest share sale. The proceeds will help fund the refinery’s planned expansion to 1.4 million barrels per day.
Refinery CEO David Bird has set a target of 10 million retail investors. He uses Saudi Aramco’s IPO as a benchmark, when more than 4.5 million retail investors subscribed.
Dangote first structured the IPO as a Nigerian offer while advisers held talks with several African markets. South Africa, Egypt and Ghana have discussed participation, and Rwanda plans to open access for eligible investors.
The wider push aims to turn a Nigerian share sale into an African investment opportunity as regulators and market operators work through cross-border requirements. Each new approval widens the pool of investors who can buy into the offer.
