Dangote and his refinery...
Nigeria’s Dangote Group is planning to price the initial public offering of its refinery unit at 525 naira ($0.40) per share, potentially raising about $1.5 billion, two people with direct knowledge of the deal told Reuters on Friday.
The company is planning to sell 4.1 billion shares, one of the sources and a third person said, speaking on condition of anonymity because the terms are still private. They did not say what stake in the refinery this would represent.
The order book for the offer, which is set to be Africa’s biggest, is scheduled to open on September 14, one of the sources said.
Dangote Refinery declined to comment.
There will be a green shoe option of 15%, which allows the company to raise more cash should the offer be oversubscribed, one of the sources said.
The Dangote Group, which owns the Lagos-based refinery, is raising cash to fund a doubling of capacity at the facility to 1.4 million barrels of oil per day.
Aliko Dangote, the group’s majority shareholder, told a business meeting in Botswana late on Thursday that the IPO will open in the next 10 to 12 days.
REUTERS
