The exchanges belonging to the Southern African Development Community (SADC) have chosen Botswana as the venue for trading shares of Dangote Petroleum Refinery and Petrochemicals FZE in Africa. This is reported by foreign media with reference to a representative of SADC.
Thus, a relatively small market will play a key role in the largest stock offering in the African region to date.
The division of the Nigerian Access Bank Plc in Botswana will act as the issuer of depositary receipts. Dangote expects to raise $500 million through Botswana's depositary receipts as part of the overall IPO.
As part of the IPO, Dangote Petroleum Refinery plans to raise $1.6 billion through the placement of 4.1 billion shares at a price of $0.40 per share for a total company value of $49 billion.
Dangote Group extended its IPO by two weeks, until October 27. The Ethiopian markets regulator has allowed Dangote Petroleum to offer securities to only 100 investors in the country.
Stanbic IBTC Capital Ltd., Vetiva Advisory Services Ltd. and FirstCap Ltd. are acting as organizers of the IPO, which followed a private equity offering of $2.5 billion from investors including Africa Finance Corp. and the African Export-Import Bank.
Dangote Group aims to increase its market value to $100 billion through the production of oil and fertilizers.
Dangote Group is a Nigerian diversified industrial conglomerate headquartered in Lagos, Nigeria. The company is engaged in cement production at integrated plants in 10 African countries, including Nigeria, Ethiopia, Tanzania and Senegal, as well as sugar refining (Dangote Sugar Refinery Plc), oil and petrochemical production. Dangote Group is owned by Nigerian billionaire Aliko Mohammad Dangote.
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