Reuters reported the planned pricing on Friday, citing two people with direct knowledge of the deal, who spoke on condition of anonymity because the terms of the proposed offering remain private.
The sources said the refinery is targeting an opening of its order book on September 14, while Dangote Refinery declined to comment on the proposed terms.
The latest details come after Aliko Dangote said that the IPO was expected to open within the next 10 to 12 days.
What they are saying
According to sources familiar with the proposed transaction, Dangote Group plans to sell 4.1 billion shares in the refinery at N525 each, potentially generating about $1.5 billion.
The sources did not disclose what percentage stake in the Lagos-based refinery the 4.1 billion shares would represent.
The proposed offer will also include a 15% greenshoe option.
In simple terms, this would allow the company to sell additional shares if investor demand exceeds the number of shares initially offered, potentially enabling Dangote Refinery to raise more than its initial $1.5 billion target.
The fundraising is expected to support Dangote Group’s plans to double the refinery’s capacity from its current 650,000 barrels per day to 1.4 million barrels per day.
Get up to speed
Earlier on Friday, Nairametrics reported that the initial public offering of the Dangote Refinery, Africa’s largest oil refinery, was expected to open within the next 10 to 12 days.
