Uganda Approves Domestic Investor Access to Dangote Refinery IPO

Uganda has approved the participation of its domestic investors in the initial public offering of Nigeria’s Dangote Petroleum Refinery, widening access to the share sale beyond the Nigerian market.

Uganda’s Capital Markets Authority said the offer should be marketed only to “high-net-worth individuals and professional investors.” The statement was issued on Tuesday, according to the reported information.

Offer expands beyond Nigeria

Uganda’s approval follows Kenya’s earlier decision to allow its citizens to participate in the IPO. The two approvals expand the pool of potential investors for the refinery’s public offering beyond Nigeria.

The refinery, owned by Nigerian billionaire Aliko Dangote, opened its ownership to the public in mid-September. The offer is known as the people’s IPO and could become Africa’s largest IPO, according to the report.

Fundraising and refinery plans

Dangote is seeking to raise $1.6 billion through the offering. Investors in the people’s IPO are required to purchase at least 10 shares, with the minimum investment put at about $4.

The offer is scheduled to close on October 13. Proceeds form part of plans to increase the refinery’s capacity to 1.4 million barrels per day.