Dangote IPO Gives Nigerians Access To World-Scale Business – FCMB

The Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals has opened access to a world-scale business to Nigerians, while demonstrating the growing depth and reach of the country’s capital market, Group Chief Executive of First City Monument Bank (FCMB), Ladi Balogun, has said.

Balogun stated this recently at the Nigerian Exchange in Lagos, as investors commenced subscriptions to the refinery’s landmark offer.

The refinery is offering 4.1 billion ordinary shares at ₦525 per share, with the offer valued at about ₦2.15 trillion if fully subscribed. The IPO opened on September 14 and is scheduled to close on October 13.

According to Balogun, the offer provides Nigerians with an opportunity to invest in a world-class and world-scale business that would otherwise have remained largely inaccessible to individual investors.

“It presents an opportunity for every Nigerian to experience the benefits of investing in world-class and world-scale businesses that would otherwise be inaccessible,” he said.

Balogun said the transaction also underscored the expanding capacity of Nigeria’s capital market to mobilise funds from a broad range of investors.

He noted that the market was attracting retail investors, high-net-worth individuals, institutional investors and international investors through an increasing number of investment channels.

“Retail investors are buying shares on their mobile phones through fintechs, banks and brokers,” he said.

“High-net-worth individuals and institutional investors such as pension funds are bringing depth to the market, while international investors are bringing scale.”

He said the broad participation in the Dangote Refinery IPO demonstrated the ability of the Nigerian capital market to support credible local businesses seeking to raise capital on a large scale.

Balogun also described the refinery as largely insulated from the macroeconomic and currency risks associated with the Nigerian economy.

“The number of such companies on our Exchange is growing,” he said. “This indicates the potential and direction of the Nigerian economy.”

FCMB Group is participating in the transaction through three of its operating companies.

FCMB Capital Markets is a joint issuing house, CSL Stockbrokers is the stockbroker to the issue, while First City Monument Bank serves as a receiving bank and distribution agent.

Investors can subscribe through FCMB branches, business offices and the FCMB Mobile App, among other available channels.

CSL Stockbrokers can provide retail investors with guidance on the potential merits and risks of the investment, while FCMB Capital Markets is available to advise high-net-worth individuals and qualified investors.

The Dangote Refinery has a processing capacity of about 700,000 barrels of crude oil per day, with plans to expand capacity to approximately 1.4 million barrels per day.