Nairobi, September 30- Kenyan investors could soon have an opportunity to invest in Dangote Petroleum Refinery through the Nairobi Securities Exchange (NSE), with shares expected to be available at about Sh49.25 each, subject to regulatory approval.
The NSE and Capital Markets Authority (CMA) are developing a structure that will allow local investors to participate in the Nigerian refinery’s ongoing initial public offering (IPO) through Global Depositary Receipts (GDRs). These receipts represent shares in a foreign company and can be traded locally.
Under the proposed arrangement, Renaissance Capital will issue the GDRs, while Stanbic Bank will serve as the custodian. Kenyan investors will be able to trade the receipts through licensed local brokers and settle transactions in shillings through the Central Depository and Settlement Corporation (CDSC).
The Kenyan offer is expected to run from October 5 to October 13, pending regulatory approval, with the GDRs targeted for listing on the NSE from December 8.
With a minimum subscription of 10 shares, investors would need approximately Sh492.50 to participate based on the proposed IPO price.
The Dangote refinery IPO involves 4.1 billion shares, representing about a three per cent stake in the company. The Nigerian offer is priced at 525 naira per share and seeks to raise roughly Sh202 billion, making it the largest IPO in Africa to date.
Dangote plans to use the funds to expand the Lagos refinery’s processing capacity from 700,000 barrels per day to 1.4 million barrels per day over the next three years, while also strengthening its access to capital markets.
The NSE arrangement comes as Dangote considers a future physical cross-listing of the refinery on the Nairobi bourse as part of efforts to deepen African capital markets.
The company is also progressing with plans for a Sh2 trillion, 700,000-barrel-per-day refinery in Lamu, with construction expected to commence this week.
