Dangote Refinery Ipo Opens As Stockbrokers Express Confidence Of Over-subscription

By Peter Egwuatu

The N2.2 trillion Initial Public Offering, IPO of Dangote Refinery and Petrochemicals Free Zone Enterprise, has officially opened today for subscription.

Stockbrokers have expressed confidence in the offer stressing that it will be fully subscribed.
The stockbrokers who spoke to Vanguard at the ongoing “ Facts behind the offer presentations and opening gong ceremony” today expressed happiness over the offer saying it will help to deepen the market.

Commenting, Olatunde Amolegbe, Arthur stevens Asset Management / Past President Chartered Institute of Stockbrokers (CIS), said : “The advantages of the offer to investors are numerous. The stockbrokers can open a Central Securities Clearing System, CSCS account for Nigerians directly.
“ If an investor encounters challenges with the shares the stockbrokers are the ones that can sort it out for him or her . If an investor need to sell its shares or buy more they are the ones that can do it for the investors
The stockbrokers are the ones that have been specifically trained to advise on shares and stocks”
He added: “ Most of them have electronic platforms that enable investors buy shares and trade shares without leaving the comfort of your home of offices
They can help investors administer and manage their stock portfolio in order to increase your returns while reducing your risks.”
Speaking as well, Sam Ndata, Doyen of Stockberkers assured that the offer would be oversubscribed.
He said: “ We are encouraged by what Alhaji Aliko Dangote has been doing to the market. The stockbrokers remain committed to ensuring that the offer is fully subscribed. For instance, Zenith Bank was over subscribed and we made it happen. This won’t be a different case.”
Also, Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) also throw their support for the IPO of Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise, nothing that it is a significant development for Nigeria’s capital market and an opportunity for Nigerians to participate in the ownership of a strategically important national enterprise.
They noted that offer price is N525 per share, with a minimum subscription of 10 shares.
CIS and ASHON encouraged retail and institutional investors, particularly those with a long-term outlook, to consider participating through the approved channels.
The two bodies noted that the refinery’s integrated refining and petrochemicals model, its scale and its role in domestic energy supply give the business strategic relevance to Nigeria. They added that the enterprise has the potential to support import substitution, foreign-exchange earnings, industrial development and greater economic participation through the capital market.
CIS and ASHON also clarified that all stockbroking firms licenced by the Securities and Exchange Commission (SEC) are accredited receiving agents for the offer.

Investors are therefore free to approach and submit their applications through the stockbroker of their choice. This gives both existing and first-time investors access to professional guidance and the flexibility to participate through an intermediary they know and trust.
President of CIS, Dr Fiona Ahimie, said: “The proposed listing is a welcome development for Nigeria and for our capital market. The refinery combines a strong integrated business model with the scale and strategic importance required to contribute meaningfully to the country’s energy security and industrial growth. It also gives Nigerians an opportunity to participate in the ownership of an important national enterprise. Investors with a long-term outlook should consider being part of this opportunity.”
Ahimie added that the offer could help strengthen public participation in wealth creation and deepen understanding of how the capital market connects Nigerian savings with productive enterprise. She said the nationwide network of licensed stockbrokers is available to explain the offer process and help investors participate smoothly.
Chairman of ASHON, Sehinde Adenagbe, said: “Bringing an enterprise of this scale to the public market broadens participation, supports wealth creation and adds depth to Nigeria’s investment landscape. The stockbroking community welcomes the offer and is ready to support a seamless process so that investors across the country can take part.”
CIS and ASHON said wide and inclusive participation would allow more Nigerians to share in the growth of a major indigenous enterprise while reinforcing the capital market’s role in funding businesses of national importance. Stockbrokers can assist existing investors with their Central Securities Clearing System account and Clearing House Number details, while also guiding first-time investors through the account-opening and application process.
As with every equity investment, prospective investors should read the approved offer documents and participate at a level consistent with their financial circumstances and long-term objectives. Professional guidance is available from SEC-registered stockbrokers where clarification is required.
CIS and ASHON expressed support for a successful offer and listing, saying that broad participation would strengthen Nigeria’s investment culture, expand local ownership and contribute to the continued development of the capital market.

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