Kenyan investors can now participate in Dangote Petroleum Refinery and Petrochemicals’ $1.6 billion initial public offering (IPO) through a Global Depositary Receipt (GDR) structure.
Kenya’s Capital Markets Authority (CMA) approved the Short Form Prospectus for the arrangement on October 5, allowing eligible investors to gain exposure to the Nigerian refinery through Kenya’s capital market infrastructure.
The GDRs will be structured by Renaissance Capital Kenya after the Nigerian IPO closes and shares are allocated. The instruments are expected to be listed on the Nairobi Securities Exchange (NSE), subject to the necessary approvals from Nigeria’s Securities and Exchange Commission.
How the investment will work
The arrangement will allow Kenyan investors to access Dangote Refinery shares without directly purchasing the underlying Nigerian shares.
The shares will remain held in Nigeria, while the corresponding GDRs will give eligible Kenyan investors exposure to the investment through the Nairobi market.
Renaissance Capital Kenya is working with its Nigerian affiliate on the transaction, while several licensed Kenyan investment firms and banks are also facilitating access for their clients.
The CMA said the initiative is the first of its kind since Kenya introduced its policy framework for Global Depositary Receipts and Global Depositary Notes.
Dangote IPO attracts wider African interest
Dangote Refinery launched the IPO on September 14, offering 4.1 billion shares at N525 each. The offer is targeting about N2.15 trillion, equivalent to roughly $1.6 billion, and is scheduled to close on October 13.
The offer has attracted significant interest beyond Nigeria as investors across Africa seek access to the refinery.
Rwanda has also been facilitating participation by its investors, while other African markets have been exploring depositary receipt structures that could connect their investors to the Nigerian offering.
The development gives Kenyan investors a local route into one of Africa’s largest industrial investments while creating a link between Nigeria’s and Kenya’s capital markets.
The CMA, however, clarified that the GDR arrangement relates specifically to the Dangote Petroleum Refinery and Petrochemicals in Nigeria. It is not an offer of shares in Dangote’s planned East African refinery project in Lamu, Kenya.
SEO Title: Kenya Approves Dangote Refinery’s $1.6bn IPO Access
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