Uganda Approves Domestic Participation in Dangote Refinery IPO

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

The country’s Capital Markets Authority said on Tuesday that the offer should be marketed only to “high-net-worth individuals and professional investors.” Details of the approval process and the number of Ugandan investors expected to participate were not provided.

Offer expands beyond Nigeria

Uganda’s decision follows Kenya’s approval earlier in the week for its citizens to take part in the offering. The developments indicate that the refinery’s ownership sale is reaching investors outside its home market.

Dangote Petroleum Refinery, owned by Nigerian billionaire Aliko Dangote, opened its ownership to the public in mid-September. The offer is scheduled to close on October 13.

Fundraising and participation terms

Dangote is seeking to raise $1.6 billion through the IPO. Members of the public can participate by purchasing at least 10 shares, with a minimum investment of about $4, according to the source material.

The refinery is described as Africa’s biggest oil refinery. Dangote also plans to increase its capacity to 1.4 million barrels per day. The IPO could become Africa’s largest, although that remains a possibility rather than a confirmed outcome.