The N2.2 trillion Initial Public Offering (IPO) of Dangote Refinery and Petrochemicals Free Zone Enterprise has officially opened for subscription, with stockbrokers expressing confidence that the offer will be fully subscribed.
The stockbrokers spoke at the ongoing “Facts Behind the Offer” presentation and opening gong ceremony, where they welcomed the IPO as a development that could further deepen Nigeria’s capital market.
Olatunde Amolegbe of Arthur Stevens Asset Management and former President of the Chartered Institute of Stockbrokers (CIS), highlighted the benefits of using licensed stockbrokers when investing in the offer.
He said stockbrokers could help Nigerians open Central Securities Clearing System (CSCS) accounts and assist investors with issues concerning their shares.
“If an investor encounters challenges with the shares the stockbrokers are the ones that can sort it out for him or her. If an investor need to sell its shares or buy more they are the ones that can do it for the investors.
The stockbrokers are the ones that have been specifically trained to advise on shares and stocks.”
Amolegbe added that many stockbroking firms have electronic platforms that allow investors to purchase and trade shares remotely.
“Most of them have electronic platforms that enable investors buy shares and trade shares without leaving the comfort of your home of offices.
“They can help investors administer and manage their stock portfolio in order to increase your returns while reducing your risks.”
Sam Ndata, Doyen of Stockbrokers, also expressed confidence in the offer, saying it would attract enough demand from investors to become oversubscribed.
“We are encouraged by what Alhaji Aliko Dangote has been doing to the market. The stockbrokers remain committed to ensuring that the offer is fully subscribed. For instance, Zenith Bank was over subscribed and we made it happen. This won’t be a different case.”
The Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) also backed the IPO, describing it as an important development for Nigeria’s capital market and an opportunity for Nigerians to own part of a strategically significant national enterprise.
The two organisations confirmed that the offer price is N525 per share, with a minimum subscription of 10 shares.
They encouraged both retail and institutional investors, particularly those with long-term investment goals, to consider participating through approved channels.
According to CIS and ASHON, the refinery’s integrated refining and petrochemicals operations, its scale and its role in supplying energy domestically give it significant strategic importance to Nigeria.
They said the business could contribute to import substitution, foreign exchange earnings, industrial development and broader participation in economic wealth creation through the capital market.
CIS and ASHON also clarified that all stockbroking firms licensed by the Securities and Exchange Commission (SEC) are accredited receiving agents for the offer.
Investors can therefore submit their applications through any stockbroker of their choice, giving both experienced and first-time investors access to professional assistance and the flexibility to use an intermediary they trust.
President of CIS, Dr Fiona Ahimie, described the proposed listing as a positive development for Nigeria and its capital market.
“The proposed listing is a welcome development for Nigeria and for our capital market. The refinery combines a strong integrated business model with the scale and strategic importance required to contribute meaningfully to the country’s energy security and industrial growth. It also gives Nigerians an opportunity to participate in the ownership of an important national enterprise. Investors with a long-term outlook should consider being part of this opportunity.”
Ahimie said the IPO could also increase public participation in wealth creation and improve understanding of how the capital market connects Nigerian savings with productive businesses.
She added that licensed stockbrokers across the country were available to explain the offer process and guide investors through their applications.
Chairman of ASHON, Sehinde Adenagbe, said the public offering would broaden investment participation and strengthen Nigeria’s investment landscape.
“Bringing an enterprise of this scale to the public market broadens participation, supports wealth creation and adds depth to Nigeria’s investment landscape. The stockbroking community welcomes the offer and is ready to support a seamless process so that investors across the country can take part.”
CIS and ASHON said broad participation would give more Nigerians an opportunity to benefit from the growth of a major indigenous company while strengthening the role of the capital market in financing businesses considered important to the national economy.
They noted that stockbrokers could assist existing investors with their CSCS account and Clearing House Number details, while also helping first-time investors through the account-opening and application process.
The two organisations, however, advised prospective investors to study the approved offer documents and invest according to their financial circumstances and long-term objectives.
They said professional guidance is available from SEC-registered stockbrokers for investors who require clarification before participating.
CIS and ASHON expressed support for the successful completion and listing of the offer, saying broad participation would help strengthen Nigeria’s investment culture, increase local ownership and support the continued development of the country’s capital market.
