Dangote Refinery to give retail investors 1 extra share for every 10 held annually in first two years of listing

Dangote Petroleum Refinery & Petrochemicals FZE will give eligible retail investors one additional share for every 10 shares held continuously for 12 months in each of the first two years after its listing.

Chuka Eseka, Group Managing Director and Chief Executive Officer of Vetiva Capital Management, the parent company of the lead issuing house, disclosed this while speaking on the refinery’s public offer on Monday.

Dangote Refinery opened its order book on Monday for its $1.6 billion initial public offering (IPO), launching a month-long capital-raising exercise targeted at retail investors across Africa.

The offer comprises 4.1 billion shares priced at N525 each and will close on 13 October, according to the offer prospectus.

According to Mr Eseka, under the retail incentive programme, investors who subscribe for a minimum of 10 shares and hold them continuously for 12 months will receive one additional share.

Investors who maintain their holdings for another 12 months will receive a second additional share, allowing eligible investors to earn up to two additional shares over the two years.

Mr Eseka said the incentive programme was designed to encourage Nigerians to participate in the offer and continue holding the shares for the long term.

“It’s a retail incentive programme. To be eligible, you need to subscribe to at least 10 units. If you hold those 10 units continuously for 12 months, you will get one additional share.

“And if you hold an additional 12 months, you get an additional share. So you could earn up to two additional shares from a retail incentive programme,” he explained.

Mr Eseka said investors who purchase shares on the secondary market after the company is listed would not qualify for the additional shares, as the incentive applies only to eligible investors who subscribe through the public offer.

Offer details

The refinery public offer, which comprises 4.1 billion ordinary shares priced at ₦525 per share, opened on Monday and will close on 13 October.

Investors can subscribe through digital investment platforms or traditional stockbrokers, Mr Eseka added.

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He also said the offer had been certified Sharia-compliant following an independent Sharia assessment and applicable screening criteria.

He said this would broaden access to the investment, including for investors and funds focused on ethical or Sharia-compliant investments.

Mr Eseka said proceeds from the offer would partly fund the expansion of the refinery’s production capacity from 700,000 barrels per day to 1.4 million barrels per day.

He added that the funds would also support the development of additional petrochemical units.

The Dangote Refinery is seeking to raise funds through the offer to finance its expansion plans.