3 articles · Updated · Business Insider Africa · Nov 14
Summary
$900 million to $1 billion in applications came from South Africa’s Public Investment Corporation and Nigerian pension fund administrators for Dangote Refinery shares, according to people familiar with the offer.
Those requests are not final allocations: the IPO drew about $4.3 billion of demand from nearly 3.8 million investors for a deal initially sized at $1.6 billion, or up to $2.1 billion with a 30% over-allotment.
Aliko Dangote could sell part of his own stake in a separate secondary transaction to satisfy excess institutional demand, though no such sale has been announced and he is expected to retain control.
Nigerian pension funds joined only after PenCom granted a one-off waiver because the refinery does not yet meet normal profit and dividend eligibility rules for pension investment.
The listing values the 650,000-barrel-a-day refinery at about $50 billion and is meant to help fund a $14.3 billion expansion that would lift capacity to 1.4 million barrels a day by 2029.