Botswana has been selected as the southern African hub for the initial public offering of Dangote Petroleum Refinery And Petrochemicals Fze, the continent’s largest oil refinery. The Southern African Development Community (SADC) chose Botswana to host trading in the region, aiming to simplify the process for investors. Access Bank Plc’s Botswana unit will serve as the depository receipt issuer.
The IPO seeks to raise $1.6 billion through the sale of 4.1 billion shares, with $500 million expected from Botswana depositary receipts. Aliko Dangote, the refinery’s owner and Africa’s richest man, stated that investor interest has exceeded targets by three to four times. The IPO was extended to October 27 to allow broader participation.
Interest has been received from investors in all African countries except Comoros, São Tomé and Príncipe, and Seychelles. Ethiopia’s capital-markets regulator also cleared Dangote Petroleum to offer securities to up to 100 qualified investors.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing