By Radarr Africa Business Desk
LAGOS, November 2 (Radarr Africa) – The allotment of shares in the Dangote Petroleum Refinery and Petrochemicals initial public offering (IPO) is awaiting approval from Nigeria’s Securities and Exchange Commission (SEC), with a draft allotment due at the regulator on November 10, The Rio Times reported on Sunday.
The offer closed on Tuesday, October 27, after the SEC approved a two-week extension, the report said. The offer website said applications were being checked at the time. The offer had opened on September 14 and was originally due to close on October 13.
The SEC is expected to approve the allotment on November 17, according to the timetable cited in the report, which drew on the company’s prospectus and offer website. Refunds of surplus or rejected application money are due within five business days of allotment, and shares are due to reach Central Securities Clearing System (CSCS) accounts within 15 business days.
The prospectus puts listing 15 business days after allotment. No first trading day has been announced, The Rio Times said.
The offer comprises 4.1 billion shares at N525 each, worth N2.15 trillion before costs, or about US$1.6 billion, based on the Central Bank of Nigeria rate of N1,345.76 to the dollar on October 30. The minimum order was 10 shares, or N5,250. The company may take up to 30 per cent more shares, subject to SEC approval.
Pan-African Refinery Investment, a Mauritius-registered vehicle, committed up to US$400 million, about 25 per cent of the offer, according to the report.
The prospectus also provides for bonus shares. Investors who hold the minimum for 12 months receive one free share, and a second after a further 12 months, if the necessary approvals are granted.
The refinery can process about 700,000 barrels of crude a day, the report said.
David Bird, the refinery’s chief executive, welcomed the regulator’s approval of the extension, according to a statement from the company dated October 12 that The Rio Times cited.
Separately, TheCable reported that the Federal Executive Council approved a proposal to allow NNPC Limited to sell crude to the Dangote refinery and other refineries in naira. It said Afreximbank is the lead arranger between NNPC and Dangote, which needs 15 crude cargoes a year costing about US$13.5 billion, of which NNPC has committed to supply four.
The company has not published an applicant count or a total order value, The Rio Times said. It reported that figures circulating for online subscribers, order values and the number of possible retail investors had not been confirmed by any official source. It also said a claim that investors from 120 countries took part does not appear on the offer website.
Applicants without a depository account hold their shares through Coronation Registrars, the report said.
The dates and figures above come from the company’s prospectus and offer website as cited by The Rio Times.
Separately, BusinessDay reported on September 29 that the Securities and Exchange Commission of Zimbabwe had approved participation by Zimbabwean investors through the Southern African regional depositary receipt programme, according to the Financial Securities Exchange. The newspaper said Rwanda and Kenya have also pursued similar mechanisms.
