Dangote Petroleum Refinery’s initial public offering (IPO) drew applications worth about ₦5.85 trillion from nearly 3.8 million investors, far above the ₦2.15 trillion the company set out to raise.
According to subscription data seen by Nairametrics, investors applied for 11.15 billion shares, against 4.1 billion shares offered at ₦525 each. That puts demand at roughly 2.7 times the base offer.
These are applications, not final allotments. The amount the company actually raises will depend on the allotment process and regulatory approvals.
Subscribers fall short of the 10 million target
Banks, stockbrokers and digital investment platforms handled applications, and retail investors took part in large numbers. However, the roughly 3.8 million subscribers is well below Aliko Dangote’s stated aim of 10 million investors.
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About 1.55 million unique online retail subscribers applied for more than ₦860 billion, or at least 14.7% of the ₦5.85 trillion total. That figure covers online retail applications only, and may not include those made offline.
The same report said that around 2.2 million online subscription transactions had been processed by October 31.
Three investors account for nearly half of demand
Value was concentrated. Just three subscribers made up about 46.72% of the shares applied for, worth around ₦2.73 trillion.
The gap shows the difference between how many people take part and how much capital they bring. Retail investors widen the shareholder base, while large institutional and high-net-worth applicants can supply most of the money.
International interest
Bloomberg earlier reported that the IPO attracted about $4.1 billion in applications, including roughly $1.9 billion from Nigerian investors and $2.1 billion from prospective international investors.
The report said South Africa’s Public Investment Corporation (PIC), which manages about $220 billion in pension assets, sought a substantial allocation, and that Nigerian pension fund managers also expressed interest.
What happens next
Attention now turns to allotment. The company must decide how to share the available shares among investor categories, subject to regulatory approval. That decision will fix the amount raised and how many applications can be met.
It is not yet clear whether more shares could be made available through secondary transactions to meet some of the institutional demand. Nigeria’s Securities and Exchange Commission (SEC) allowed the refinery to absorb up to 30% in extra oversubscription on top of its base offer.
Background
- The IPO opened on September 14, 2026, with about 4.1 billion ordinary shares at ₦525 each.
- The subscription period was due to close on October 13 and was extended to October 27 with regulatory approval.
- The offering is part of the refinery’s plan to expand processing capacity to about 1.4 million barrels per day. It has outlined an investment programme of about $14.3 billion over five years, with equity proceeds expected to help fund it.
- For the nine months to September 2026, the company reported revenue of $22.48 billion, up 144.47% from the same period of 2025. Profit after tax was $4.73 billion, compared with a loss of about $117 million a year earlier.
The final allotment announcement should show how much was raised, who the shareholders are and when trading begins on the Nigerian Exchange (NGX).
This article is for information only and is not investment advice. Share prices can fall as well as rise.
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