The N2.2 trillion Initial Public Offering (IPO) of Dangote Refinery and Petrochemicals Free Zone Enterprise officially opened for subscription on Monday, with stockbrokers expressing confidence that the offer will be oversubscribed.
Speaking at the “Facts Behind the Offer” presentation and opening gong ceremony, Olatunde Amolegbe of Arthur Stevens Asset Management and former President of the Chartered Institute of Stockbrokers (CIS), said the IPO offers several benefits to investors.
Amolegbe noted that stockbrokers can assist investors with opening Central Securities Clearing System (CSCS) accounts, purchasing and selling shares, and managing their investment portfolios.
He added that many stockbroking firms operate electronic platforms that allow investors to trade from their homes or offices while providing professional guidance to help manage risks and improve returns.
Also speaking, Sam Ndata, Doyen of Stockbrokers, expressed confidence that the offer would be oversubscribed, citing the successful subscription of previous major offers, including Zenith Bank’s.
The Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) also endorsed the IPO, describing it as a major development for Nigeria’s capital market and an opportunity for Nigerians to own shares in a strategically important indigenous enterprise.
The offer price is N525 per share, with a minimum subscription of 10 shares.
CIS President, Dr Fiona Ahimie, said the proposed listing would deepen the capital market while supporting Nigeria’s energy security and industrial development.
She urged investors with a long-term outlook to consider participating in the offer, noting that licensed stockbrokers across the country are available to guide investors through the process.
ASHON Chairman, Sehinde Adenagbe, said taking an enterprise of Dangote Refinery’s scale to the public market would broaden investment participation, promote wealth creation and strengthen Nigeria’s investment landscape.
CIS and ASHON said the refinery’s integrated refining and petrochemicals operations, scale and strategic role in domestic energy supply could support import substitution, foreign-exchange earnings and industrial development.
They also clarified that all stockbroking firms licensed by the Securities and Exchange Commission (SEC) are accredited receiving agents for the offer.
Investors can therefore submit their applications through any SEC-registered stockbroker of their choice, while prospective investors were advised to study the approved offer documents and invest in line with their financial circumstances and long-term objectives.