The planned listing of Dangote Petroleum Refinery and Petrochemicals FZE on the Nigerian capital market has received regulatory backing from the Securities and Exchange Commission, with the company targeting about N2.15tn through its Initial Public Offering.
The approval clears the way for the refinery to offer 4.1 billion ordinary shares to investors at N525 each, according to a statement issued by the Dangote Group on Friday.
The SEC’s approval was communicated to Vetiva Advisory Services Limited, the Lead Issuing House handling the offer, in a letter signed by Abdulkadir Abbas, Director of the Commission’s Securities and Investment Services Department.
Beyond approving the proposed offer, the regulator has also registered 120.13 billion existing ordinary shares of the company.
The latest development allows the refinery to proceed with the completion board meeting and signing ceremony as part of the next stage of the IPO process.
“The regulatory approval clears the refinery’s draft offer documents and authorises the company to proceed with its completion board meeting and signing ceremony, marking a significant milestone in the IPO process,” the statement said.
The Dangote Group said the SEC’s clearance would give investors an opportunity to acquire an interest in the refinery while contributing to the further development of Nigeria’s capital market.
“The SEC’s clearance represents another major step in the evolution of Dangote Petroleum Refinery, opening investment opportunities in one of Africa’s most strategic industrial assets and further strengthening Nigeria’s capital market,” the statement said.
The refinery, situated within the Dangote Petroleum Refinery and Petrochemicals Complex in Ibeju-Lekki, Lagos, spans about 2,635 hectares and incorporates refining and petrochemical operations.
It currently has the capacity to process 700,000 barrels of crude oil daily and operates a polypropylene plant with an annual production capacity of 900,000 tonnes. A dedicated 435-megawatt power plant supplies electricity to the facility.
The refinery was developed to meet a substantial portion of Nigeria’s demand for refined petroleum products while also supplying international markets.
An expansion programme is currently underway and is expected to eventually raise its refining capacity to 1.4 million barrels per day, a level that would position it as the largest refinery in the world if achieved.
Its supporting infrastructure includes a marine facility aimed at improving cargo movement and logistics, as well as five Single Point Moorings.
The complex also features an integrated port system with quays designed to accommodate Panamax vessels, liquid cargoes and roll-on/roll-off operations.
The facility has 177 storage tanks with a combined holding capacity of about 4.742 billion litres.
According to the company, the refinery uses advanced processing technology designed to comply with World Bank, United States Environmental Protection Agency, European emission standards and Nigerian regulatory requirements.
The SEC approval therefore marks a significant milestone in Dangote Refinery’s effort to bring more investors into its ownership and secure fresh funding through the Nigerian capital market.