Dangote Refinery IPO Secures N5.85tn in Applications

Dangote Petroleum Refinery's initial public offering (IPO) has attracted share applications worth approximately N5.85tn ($4.1bn), significantly surpassing its initial fundraising target of $1.6bn. The IPO has seen applications from all 54 African countries, with demand exceeding the number of shares available.

Nigerian investors contributed about $1.9bn, while international buyers provided another $2.1bn in investment interest. The reported subscription value reflects investor demand and does not indicate the final amount the company will raise.

The refinery is considering expanding the offering to accommodate more investors, although some demand may remain unmet. There are nearly four million unique subscription applications, with a significant level of retail participation aimed at attracting 10 million individual investors.

Institutional investors, including Nigerian and South African pension fund managers, have also shown strong interest. The Public Investment Corporation, managing about $220bn in pension assets, has requested a substantial allocation, which may be accommodated through a secondary share sale.