Ethiopia Limits Access to Dangote’s $1.6bn IPO to Qualified Investors

Ethiopia’s capital markets regulator has restricted the proposed sale of securities linked to Dangote Petroleum and Petrochemicals’ initial public offering to qualified investors, setting a limit of 100 participants unless it grants prior approval for a larger number.

The Ethiopian Capital Market Authority said on October 13 that it had been approached in connection with the proposed offering in Ethiopia, which is linked to the Nigerian company’s IPO. The authority did not disclose the identity of the party that approached it, the structure of the proposed transaction or whether any securities had already been sold to Ethiopian investors.

The restriction comes as Dangote Petroleum and Petrochemicals seeks to raise about US$1.6 billion through an offer of 4.1 billion ordinary shares at 525 Nigerian naira each. The offer, which opened on September 14, has been extended to October 27 from its original October 13 closing date, according to announcements by the company and Nigerian regulators.

The IPO is part of efforts to broaden ownership of the business established by Nigerian billionaire Aliko Dangote. Its refinery near Lagos has a stated capacity of 700,000 barrels a day and began operations in 2024.

ECMA said any marketing, solicitation or sale of the securities in Ethiopia must comply with the Capital Market Proclamation No. 1248/2021 and the Public Offer and Trading of Securities Directive No. 1030/2024. The proposed offer does not constitute an invitation to the Ethiopian public, and securities cannot be marketed or sold to people who do not meet the country’s definition of qualified investors.

Intermediaries and other parties involved in distributing the securities must verify and document each prospective investor’s eligibility before allowing participation. Offering documents and promotional materials must also state clearly that the transaction is restricted to qualified investors.

Source: FSX Business News