Nigerian billionaire Aliko Dangote seeks wider African access for $1.6 billion refinery IPO

Nigerian billionaire Aliko Dangote has held discussions with African stock exchanges about widening investor access to his $1.6 billion refinery initial public offering, as differences in securities regulations complicate efforts to expand participation beyond Nigeria.

Edoh Kossi Amenounve, chief executive of the Abidjan based Bourse Régionale des Valeurs Mobilières (BRVM), told Reuters that discussions began in April at Dangote’s invitation. The talks focused on how investors in different African markets could participate in the offering despite differences in listing requirements and regulatory procedures.

Amenounve said one option considered was the use of Global Depositary Receipts, which would allow financial instruments representing shares in the refinery to be listed on other African exchanges. He cited Kenya and Botswana as examples of markets where similar arrangements have been used.

However, reaching an agreement across several markets has proved difficult because companies seeking to offer securities in different jurisdictions must comply with separate regulatory requirements. Amenounve said the discussions had not produced a common approach.

He called for greater harmonisation among African securities regulators and mutual recognition of approvals granted in different countries. He also pointed to the African Exchanges Linkage Project, which provides technology for investors to trade securities across participating markets, as an existing platform that could support wider market integration.

The discussions formed part of efforts to broaden participation in Dangote Petroleum Refinery and Petrochemicals’ public offering. The company offered 4.1 billion ordinary shares at ₦525 each, targeting proceeds of approximately ₦2.15 trillion, equivalent to about $1.6 billion.

The offer opened on Sept 14 and closed on Oct 27, following an extension approved by Nigeria’s Securities and Exchange Commission. In its Oct 12 extension notice, the refinery said the additional time would support efforts to expand distribution channels across African markets and implement depositary receipt programmes to facilitate participation by investors outside Nigeria.

The share sale attracted orders worth approximately ₦6.4 trillion, or $4.78 billion, from Nigerian retail and institutional investors, according to sources cited by Reuters. That represented roughly three times the value of shares offered. More than two million investors had subscribed through digital channels, while applications from other African markets were expected to add to demand.

The refinery is expected to list on the Nigerian Exchange later in November, subject to the completion of the allotment and regulatory process.

Built at an estimated cost of $20 billion, the facility has a processing capacity of 700,000 barrels per day and began commercial operations in early 2024. Wider participation by African investors would extend the ownership base of one of the continent’s largest industrial projects, although the regulatory arrangements needed to support listings across multiple markets remain unresolved.