Kenyan investors could soon gain access to Dangote Petroleum Refinery’s Sh207 billion initial public offering (IPO) through Global Depositary Receipts (GDRs) listed on the Nairobi Securities Exchange (NSE).
The proposed arrangement is being coordinated by the NSE and requires approval from the Capital Markets Authority (CMA). If approved, it would allow both retail and institutional investors in Kenya to participate in the Nigerian share sale without directly accessing Nigeria’s capital market.
Under the proposed structure, Dangote Refinery’s ordinary shares would remain held in custody in Nigeria, while corresponding GDRs would be issued and traded on the NSE. The securities would settle in Kenyan shillings through the Central Depository and Settlement Corporation (CDSC).
The proposed GDR programme is being backed by a consortium that includes Renaissance Capital Kenya and Nigeria, Stanbic as custodian, Image Registrar, GNA Advocates and Newmark. The GDRs could potentially be listed on the NSE as early as December, subject to regulatory approval.
Dangote Refinery opened its IPO in Nigeria on September 14, offering 4.1 billion new shares at 525 Nigerian naira each. The offer is targeting about 2.15 trillion naira, equivalent to approximately Sh207 billion or $1.6 billion, if fully subscribed. The IPO is scheduled to close on October 13.
The minimum subscription is 10 shares, valued at about 5,250 naira, or roughly Sh470 based on prevailing exchange rates.
Proceeds from the IPO are intended to support Dangote’s plans to expand the refinery’s capacity from about 700,000 barrels per day to 1.4 million barrels per day.
The proposed Kenyan GDR route would give local investors exposure to the refinery through Kenya’s capital-market infrastructure while linking the NSE more closely with Nigeria’s market.
However, Kenyan investors cannot yet assume that the shares are available through the NSE. The CMA has indicated that the Dangote IPO had not been submitted to the Kenyan regulator for approval under the local legal framework, meaning the proposed GDR mechanism remains subject to regulatory clearance.
The development comes as Dangote also advances plans for a proposed $16 billion, 700,000-barrel-per-day refinery in Lamu, Kenya. The project is intended to serve Kenya and other East African markets, further increasing the regional significance of Dangote’s energy investments.
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