Dangote Refinery Extends $1.6bn IPO Deadline to October 27

Dangote Petroleum Refinery and Petrochemicals has extended its initial public offering by two weeks to October 27, giving investors more time to participate in a share sale targeting about $1.6bn.

The Nigerian refinery said on Monday that the Securities and Exchange Commission had approved the extension, moving the closing date from October 13. The offer opened on September 14.

The company attributed the decision to strong investor interest across Africa and efforts to widen access to the offering, including expanding distribution channels and facilitating cross-border investment.

The additional time will also allow prospective investors to complete account-opening procedures, identity verification and other regulatory requirements, the company said.

The IPO aims to raise about 1.6 billion US dollars from retail investors, with proceeds intended to help finance the expansion of the Lagos refinery. The amount could rise to 2.1 billion US dollars if an over-allotment option is exercised.

The extension comes as the company seeks to broaden participation beyond its domestic market. Its plans to expand distribution across African countries could increase access to the offer, although the company has not disclosed how much investor demand has been received or how much of the offering has been subscribed.

The refinery, owned by Nigerian billionaire Aliko Dangote, is central to his group's ambition to expand refining capacity and supply petroleum products to domestic and regional markets.

Source: FSX Business News