Ugandan investors can now participate in Dangote Petroleum Refinery’s $1.6 billion initial public offering (IPO). This move opens a new avenue for the Nigerian oil giant to attract investment beyond its home country.
The Capital Markets Authority (CMA) of Uganda approved this investment opportunity on October 6, following an application from Stanbic IBTC Capital, which represents Dangote Petroleum Refinery. Just days prior, Kenya also granted approval to its eligible investors, highlighting Dangote’s strategy to engage investors from across Africa before the IPO closes on October 13.
However, not every Ugandan can easily buy shares. The CMA has stated that this offer is specifically available to high-net-worth individuals and professional investors, meaning it won’t be open to general public advertisement or solicitation.
Currently, SBG Securities Uganda is the authorised intermediary responsible for marketing and selling these shares to interested Ugandan investors. Other licensed firms will need to seek approval before they can join in on this investment opportunity.
This IPO presents a momentous chance for savvy investors in Uganda to engage with one of Africa’s most ambitious oil ventures, potentially reaping the rewards of a growing market. With the deadline fast approaching, those interested should take action soon to explore this unique investment opportunity.
Another market opens for Dangote IPO
In a similar move to broaden its appeal, the Dangote refinery launched its Initial Public Offering (IPO) in Nigeria, extending beyond its local market. The IPO, which began on September 14, features an impressive 4.1 billion shares priced at ₦525 each. If fully subscribed, this offering could potentially raise around ₦2.15 trillion (approximately $1.6 billion), making it the largest share offering in Africa to date.
Dangote is promoting this IPO as a “people’s IPO,” aiming to attract an ambitious 10 million retail investors. This goal is particularly noteworthy as it seeks to surpass the record set by Saudi Aramco, which had 4.5 million retail subscribers during its own IPO in 2019.
The capital raised from this offer is crucial for financing the expansion of Dangote’s refinery. Currently, the refinery operates at a capacity of about 700,000 barrels per day, but plans are in place to double this capacity to 1.4 million barrels per day.
Located in Lekki, Lagos, Dangote’s refinery began operations in 2024 and has quickly become a cornerstone of Nigeria’s fuel supply chain, playing a vital role in meeting the country’s energy needs. With this IPO, Dangote is not just raising funds; it is inviting everyday investors to be part of a transformative project that could reshape Nigeria’s energy landscape for years to come.
Kenya and Uganda are different from the Lamu project
Uganda’s decision follows Kenya’s earlier move, which allowed its eligible investors to join in on the same investment opportunity.
The Capital Markets Authority of Kenya set up a framework enabling local investors to buy shares in the Nigerian refinery through Global Depository Receipts (GDRs) listed on the Nairobi Securities Exchange. This approach allows Kenyan investors to gain exposure to Dangote’s operations in Nigeria without directly purchasing the underlying shares.
It is important to clarify that the current IPO is separate from Dangote’s ambitious $16 billion refinery project that is being developed in Lamu, Kenya. This new facility in East Africa aims to have a capacity of 700,000 barrels per day, and just last month, Dangote and Kenyan President William Ruto marked the commencement of this significant project.
The IPO available to investors from Uganda and Kenya pertains specifically to Dangote’s existing refinery in Nigeria. With the deadline for subscription set for October 13, Uganda’s recent approval opens doors for even more African investors to participate in one of the continent’s largest capital market offerings before the window closes.
This is a chance for investors seeking to engage with Dangote’s successful operations and contribute to the growing landscape of African business.
Read also: Fintechs blame ‘unexpected traffic’ for Dangote IPO outages; banks say they saw it coming
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