Business
BREAKING: Dangote Refinery sets minimum subscription for $1.6 billion IPO
Dangote Refinery has completed the endorsement of the offer documents for its initial public offering, putting it on course to launch the $1.6 billion public equity sale, regarded as Africa’s largest ever, next week.
Aliko Dangote, Africa’s richest man and owner of the 700,000 barrel-per-day (bpd) plant, led the sign-off ceremony in Lagos on Monday in the presence of advisers and other parties to the pan-African offering, which aspires to source about N2.2 trillion from investors.
The minimum subscription of the offer is 10 ordinary shares, translating to N5,250, Mr Dangote told the event.
Lagos-based Vetiva Advisory Services Limited is coordinating the capital raise.
The ceremony follows a key approval by the capital market regulator, the Securities and Exchange Commission (SEC), last week, with 4.1 billion shares up for subscription at N525 ($0.40) per unit.
The maiden share offer values the refinery at nearly $50 billion, and plans to plough the proceeds into doubling the current capacity of the facility, which lies on a 6,180-acre expanse on the outskirts of Lagos, to 1.4 million bpd.
That could lift the market capitalisation of the Nigerian Exchange by more than one third when the shares are listed on the local bourse later this year.
A cross-border listing on the Johannesburg Stock Exchange, the continent’s biggest bourse, is in the works, just as the company is giving thought to quoting the stock in Egypt, Kenya, Ghana and Rwanda.
In July, a private placement heralding the IPO raised $2.5 billion from institutional investors and HNIs, oversubscribed by 270 per cent.
Unmet demand from the private share sale could find its way into the IPO, which, long before its approval was announced, had drawn vast interest across Nigeria, where the SEC was impelled in June to stop all the marketing related to the share sale.
The regulator’s action followed reports that many retail investors, including those with little or no knowledge of how equity investment works, were already opening trading accounts ahead of the IPO.
Nevertheless, investor appetite is growing fast beyond retail level, with Abu Dhabi National Oil Co (ADNOC) which according to Bloomberg on Monday, was said to have opened conversations with the refinery towards buying a stake in it.
The global media outlet, citing interviews with sources, noted that an insider at ADNOC said Dangote Refinery has also received approaches from other big investors.
READ ALSO: AFC leads investment in Dangote Refinery’s $2.5bn private placement
Potential model for aspiring companies
The IPO’s launch on 14 September will ride on the improved liquidity Nigeria expects to attract from foreign portfolio capital, following the country’s restoration to frontier market status by FTSE Russell after a near-three-year downgrade that bogged it down under unclassified market status, consequently deterring international investors.
Likewise, an IPO on this scale could offer a template to similarly big Nigerian companies raring to become public quoted firms and, by so doing, unlock access to financing through the capital market.
State-owned energy company NNPC Limited has been fiddling with the idea of going public and holding an IPO since 2021 after transitioning into gaining limited liability status, reviving the talks around the push last November.
The company, whose public image has long been marred by opacity in its operations and lack of transparency in publishing its accounts, may borrow a leaf from Dangote Refinery’s listing.
In June, the refinery, which commenced production in January 2024, toppled the US to become the biggest external supplier of jet fuel to Europe, maintaining the feat in July.
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Dangote Cement Plc has put its proposed listing on the London Stock Exchange on hold, citing current market conditions and the company’s strategic priorities.
The company disclosed this in a regulatory filing signed by Edward Imoedemhe, the company secretary, following a meeting of its board of directors on Tuesday.
In May, Dangote Cement announced it was in early talks over a potential London listing, a move that would help widen its access to overseas investors and capital.
The company later, in July, explained that the faster and more practical listing process in the United Kingdom influenced its preference for London over Dubai for the secondary listing.
On Tuesday, the cement producer said it will not proceed with the secondary listing, noting that its shares remain listed on the Nigerian Exchange Group, and that the decision will not affect the company’s operations.
“The Company’s ordinary shares remain listed on the NGX, and this decision does not in any way affect the Company’s operations or business plans,” Dangote Cement added.
READ ALSO: Dangote Cement’s nine-month profit jumps 31% as revenue hits N3.8 trillion
The company said it will remain focused on delivering sustainable value to its shareholders and building on its strong market position.
Dangote Cement is majority-owned by Africa’s richest man, Aliko Dangote, who launched the continent’s largest-ever initial public offering in September for his oil refinery.
Dangote Cement, with a production capacity of 55 million tonnes per annum, has a footprint in 11 African countries, including Cameroon, Ethiopia, Zambia, Tanzania, and Côte d’Ivoire, among others.
The corporation’s nine-month profit in 2026 jumped 31 per cent, while its revenue hit N3.8 trillion, boosted by improved revenue from cement and clinker sales.
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SanlamAllianz Life Insurance Nigeria Limited has launched Esusu, an innovative savings initiative designed to encourage a consistent savings culture, promote financial discipline and help Nigerians take practical steps towards achieving their financial goals.
Inspired by the traditional Nigerian Esusu savings system, the initiative combines the familiarity of regular savings practices with the added benefits of a structured insurance-backed savings arrangement. It provides individuals with an opportunity to build their savings through flexible daily contributions, with the option to make additional contributions as their financial capacity allows.
Through Esusu, customers can make regular contributions towards their savings goals and receive a maturity benefit based on their accumulated contributions, less applicable withdrawals, in line with the policy terms and conditions. The initiative also incorporates death cover, providing an additional layer of financial protection for beneficiaries in the event of an unfortunate occurrence, subject to applicable policy provisions.
Speaking at the launch, Tunde Mimiko, Managing Director/Chief Executive Officer, SanlamAllianz Life Insurance Limited, said: “At SanlamAllianz, we recognise that achieving financial confidence begins with the right financial habits. Saving should not be an overwhelming responsibility; it should be a consistent practice that individuals can incorporate into their everyday lives. With Esusu, we are bringing a familiar savings culture into a structured financial solution that encourages consistency while providing additional protection. Our goal is to empower more Nigerians to take charge of their financial future, one contribution at a time.”
The initiative reflects SanlamAllianz’s commitment to developing customer-focused solutions that respond to the evolving financial needs of Nigerians. By encouraging small, consistent contributions, Esusu seeks to demonstrate that building financial security does not necessarily require having large sums of money available at once. The product is available to eligible individuals between the ages of 18 and 80, subject to the applicable policy requirements and conditions.
Shedding more light on the product, Chris Ekwonwa, Group Head, Strategy, Marketing and Customer Relations, SanlamAllianz Nigeria, said: “Beyond providing a savings opportunity, Esusu reinforces the importance of financial literacy and long-term planning. It encourages individuals to become more intentional about managing their finances, preparing for future responsibilities and building a stronger financial foundation using a financial instrument they are very familiar with. With the campaign message “Esusu – Savings Wey Confam!”, SanlamAllianz is taking a relatable approach to financial empowerment, connecting with Nigerians through a savings concept deeply rooted in local culture while providing the structure and additional protection of an insurance solution.”
Industry watchers have long called for a retail driven product for the underserved markets, the launch of SanlamAllianz Esusu clearly is a stab at that target audience and expectations are rife as to the potential impact of the product.
SanlamAllianz Nigeria is no stranger to taking bold initiatives in the market space. With its first-of-its-kind SanlamAllianz Campus Takeover with Ayo Maff kicking off this weekend at the iconic OAU Amphitheatre at Ife, there are progressive signs that the brand is not paying lip service to its oft-stated quest to drive insurance penetration and financial inclusion in the Nigerian insurance market.
ABOUT SANLAMALLIANZ
SanlamAllianz is a Pan-African financial services joint venture between Sanlam, Africa’s largest non-banking financial services group, and Allianz, a global financial services and insurance leader.
In Nigeria, SanlamAllianz operates through its Life and General Insurance businesses, providing a range of insurance and financial solutions designed to protect individuals, families and businesses while supporting their financial aspirations.
The post SanlamAllianz Launches Esusu to Promote Savings Culture Among Nigerians appeared first on Business Today NG.
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