Dangote Petroleum Refinery & Petrochemicals FZE, owner of Africa's largest crude-processing facility in Nigeria, is offering investors in East Africa nearly 20% of its initial public offering shares. The IPO aims to raise about $300.4 million through 729 million global depositary receipts (GDRs) priced at 53.50 Kenyan shillings each. Kenya's Capital Markets Authority approved the GDR offering to eligible investors, while Uganda's Capital Markets Authority authorized promotion and distribution to local investors.
The company, led by Africa's richest man Aliko Dangote, seeks to raise at least $1.6 billion for refinery expansion, with this East Africa tranche representing a significant portion of the continent's largest IPO to date. The GDRs will be listed on the Nairobi Securities Exchange, with applications closing Oct. 13, allotments around Nov. 12, and listing 15 business days thereafter. Renaissance Capital (Kenya) Ltd. and Renaissance Capital Africa serve as joint lead transaction advisers, while Stanbic Bank Nairobi acts as custodian and receiving bank.
The minimum subscription is 2,000 GDRs, with a success threshold of 50 million shillings. The IPO values the refinery at nearly $50 billion and may set a precedent for African mega-project financing.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing