Key Takeaways
- • The Public Investment Corp (PIC), which oversees almost $220 billion in assets, applied for about $500 million of shares in the Dangote Petroleum Refinery and Petrochemicals FZE initial public offering, according to people familiar with the matter.
- • Nigerian pension-fund administrators, serving about 11 million members across 20 funds, have applied for roughly $400 million to $500 million of shares, with part of that demand covered by an earlier private placement.
- • Dangote is seeking between $1.6 billion and $2.1 billion in what would be Africa's largest IPO to date, valuing the processing complex at about $50 billion.
- • The refinery attracted about 5.85 trillion naira ($4.3 billion) in applications and close to 4 million unique subscription applications, per Bloomberg.
- • Aliko Dangote could sell down part of his own stake in a secondary sale to meet institutional demand, according to the people.
Summary
The Public Investment Corp, South Africa's largest asset manager with almost $220 billion in assets including pensions for state workers, has applied for about $500 million of shares in the initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE, according to people familiar with the matter who asked not to be named because the information is private. Nigerian pension-fund administrators operating under the Contributory Pension Scheme, which has about 11 million members across 20 funds, have collectively applied for about $400 million to $500 million of shares, part of which was covered by an earlier private placement.
Dangote is seeking to raise between $1.6 billion and $2.1 billion in what would be the continent's biggest IPO to date. The offering values the Lagos-based processing complex at about $50 billion. The company launched the IPO on September 14, offering 4.1 billion shares at 525 naira each. Bloomberg reported earlier this week that the refinery drew about 5.85 trillion naira ($4.3 billion) in applications.
The people said Aliko Dangote could consider selling some of his own stake in a secondary sale to satisfy the institutional requests. Dangote did not respond to requests for comment, the PIC declined to comment, and a spokesperson for the Pension Fund Operators Association of Nigeria did not respond.
The company received close to 4 million unique subscription applications. That falls short of Dangote's stated target of 10 million retail investors, but compares with 5.1 million individual subscribers to Saudi Aramco's 2019 IPO and roughly 840,000 applicants in the 2008 Safaricom sale in Kenya. Proceeds will fund a plan to double the complex's processing capacity to 1.4 million barrels a day.
Nigeria's Securities and Exchange Commission is expected to approve the share allotment on November 17. Trading will begin 15 business days later according to the prospectus, which points to around December 8, although the company is targeting a start to trading by the end of November, subject to approvals.
Dangote is seeking to raise between $1.6 billion and $2.1 billion in what would be the continent's biggest IPO to date. The offering values the Lagos-based processing complex at about $50 billion. The company launched the IPO on September 14, offering 4.1 billion shares at 525 naira each. Bloomberg reported earlier this week that the refinery drew about 5.85 trillion naira ($4.3 billion) in applications.
The people said Aliko Dangote could consider selling some of his own stake in a secondary sale to satisfy the institutional requests. Dangote did not respond to requests for comment, the PIC declined to comment, and a spokesperson for the Pension Fund Operators Association of Nigeria did not respond.
The company received close to 4 million unique subscription applications. That falls short of Dangote's stated target of 10 million retail investors, but compares with 5.1 million individual subscribers to Saudi Aramco's 2019 IPO and roughly 840,000 applicants in the 2008 Safaricom sale in Kenya. Proceeds will fund a plan to double the complex's processing capacity to 1.4 million barrels a day.
Nigeria's Securities and Exchange Commission is expected to approve the share allotment on November 17. Trading will begin 15 business days later according to the prospectus, which points to around December 8, although the company is targeting a start to trading by the end of November, subject to approvals.
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