By Rwanda’s capital markets regulator said it is working with stakeholders to help Rwandan investors take part in the initial public offering of Nigeria’s Dangote Petroleum Refinery, as demand for Africa’s largest share sale grows across the continent.
The Capital Markets Authority (CMA) of Rwanda said in a public statement it had seen “strong interest” from Rwandans in the Dangote Petroleum Refinery IPO and was finalising arrangements to allow their participation.
“The Capital Markets Authority of Rwanda is working with relevant stakeholders to facilitate participation by Rwandan investors in the Dangote Petroleum Refinery IPO,” the CMA said. “We are encouraged to see the strong interest in the opportunities afforded by capital markets.”
While those arrangements are completed, the regulator said interested investors could register their interest with United Capital Financial Services Rwanda Ltd through a dedicated online link https://unitedcapitalplcgroup.com/dangote-ipo/africa.
It cautioned that registering interest “does not constitute a subscription for, or allocation of, shares,” and said further details on the participation process would be released in due course.
Nigerian billionaire Aliko Dangote launched the IPO on Sept. 14, offering shares in Dangote Petroleum Refinery and Petrochemicals to retail and institutional investors for the first time.
United Capital, the Nigerian financial services group coordinating access for Rwandan investors, has described the offer as the largest in African capital markets history.
The refinery, located near Lagos, has a processing capacity of 650,000 barrels of crude oil per day, making it one of the largest single-train refineries in the world. It produces refined petroleum products and petrochemicals, including polypropylene.
Rwanda Stock Exchange Limited (RSE) said in a statement the IPO is being offered through Nigeria’s primary market, though discussions on a cross-listing or dual listing were ongoing. “Eligible investors in Rwanda may still be able to participate in the approved IPO through United Capital Financial Services PLC, Rwanda,” the RSE said.
Shares in the offer are priced at 589 Rwandan francs, or about 40 U.S. cents, with a minimum subscription of 10 shares, according to United Capital. The exchange said the low entry threshold was designed to widen participation beyond large investment funds to individual retail buyers.
Ejikeme Okoli, United Capital’s director for Africa operations, said the transaction gives Rwandan investors direct access to an African energy asset of global scale. United Capital holds licenses from both Rwanda’s central bank, the National Bank of Rwanda, and the CMA, allowing it to facilitate the offer domestically.
The IPO has drawn strong demand in Nigeria, where Dangote Industries Limited has said investor demand exceeded the shares available. Nigeria’s Securities and Exchange Commission approved an offer of 4.1 billion ordinary shares at 525 naira, or roughly 40 U.S. cents, each, with potential gross proceeds of about 2.15 trillion naira if fully subscribed.
Rwandan economist John Bosco Kalisa said the refinery could appeal to investors seeking exposure to a large industrial business serving a continent with strong demand for petroleum products.
He said a stronger African refining sector could ease pressure on foreign exchange reserves and improve fuel access for import-dependent economies such as Rwanda’s.
“It will boost the welfare of Rwandans as petroleum products are key ingredients in various sectors of the economy, including manufacturing, transport and logistics, agriculture as well as the aviation industry,” Kalisa said.
He added that several East African countries have historically exported crude oil while importing refined products, meaning much of the economic value from processing is captured elsewhere. “The value of the product was created somewhere and the benefits are residing in those countries that have a refinery,” he said.
President Paul Kagame said last month that Rwanda was in discussions over a possible stake in a separate, proposed Dangote-backed refinery in Lamu, on Kenya’s northern coast. That facility, estimated to cost $16 billion, is expected to process up to 700,000 barrels of crude oil per day once built.
Dangote said on April 23 that his company planned to replicate its Nigerian refinery model in East Africa with support from governments in the region, as part of a broader push to expand African-owned refining capacity.
The Dangote Petroleum Refinery IPO is scheduled to close on Oct. 13.
