Shareholder groups in Nigeria have called on Dangote Refinery and Petrochemicals Plc to review key terms of its planned Initial Public Offering (IPO), warning that the current structure could exclude most retail investors.
The groups are opposing reports that the IPO will require a minimum subscription of one million shares, estimated at about $350,000 at a proposed price of $0.35 per share. They argue that this threshold is too high for ordinary Nigerians and risks limiting participation to institutional investors and wealthy individuals.
They also raised concerns over a proposed 365-day lock-up period, describing it as unattractive to retail investors who typically prefer more liquidity.
The refinery’s IPO is expected to involve around three billion ordinary shares and has reportedly attracted over $2 billion in early investor commitments, signaling strong market interest in what could become one of Nigeria’s largest capital market transactions.
Despite the demand, minority shareholders are urging regulators and the company to introduce a dedicated retail allocation to ensure broader public participation. According to them, without such measures, the offering may be dominated by pension funds, institutional investors, and high-net-worth individuals.
They emphasized that allowing more Nigerians to invest aligns with the refinery’s positioning as a national asset and could boost confidence in the capital market while promoting wider ownership.
The groups also called on the Securities and Exchange Commission (SEC) and the Nigerian Exchange (NGX) to ensure a transparent and inclusive structure, in line with global best practices for major public listings.
Proceeds from the IPO are expected to fund expansion projects and support the refinery’s growth as it scales operations in regional and international energy markets.
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