Rwandan investors have been given an opportunity to buy shares in Nigeria’s Dangote Petroleum Refinery and Petrochemicals following the company’s Initial Public Offering (IPO).
The opportunity is open to both individual and institutional investors in Rwanda through United Capital Group, a member of the Joint Issuing House and an authorised broker for the Dangote Petroleum Refinery share offering.
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$1.63 Billion Share Offering
United Capital said the share offering is valued at $1.63 billion, equivalent to approximately Rwf2.4 trillion.
The company described the transaction as the largest IPO by a private company in the history of African capital markets.
The subscription period will run from September 14 to October 13, while trading of the shares on the Nigerian Stock Exchange is expected to begin in November.
Shares Start at Rwf589
The shares will be sold at Rwf589, or about $0.40, per share, with investors required to purchase at least 10 shares.
United Capital Group CEO Peter Ashade said the transaction demonstrates the company’s growing role in connecting African investors with major projects across the continent. He said the company’s presence in Rwanda gives local investors an advantage in accessing the offering.
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United Capital Highlights Rwanda Operations
Ashade said United Capital is the only authorised partner for the transaction with established operations in Rwanda through United Capital Trustees Rwanda Limited and United Capital Financial Services Rwanda Limited.
He said this position allows the company to connect Rwandan investors directly with the investment opportunity.
United Capital’s Head of Africa Operations, Ejikeme Okoli, said the initiative gives Rwandan individuals and institutions an opportunity to acquire shares in a major African energy project.
Dangote Refinery Has 650,000-Barrel Capacity
The Dangote Petroleum Refinery, located in Lagos, Nigeria, has the capacity to process 650,000 barrels of crude oil per day.
The refinery also produces petrochemical products, including polypropylene, making it one of Africa’s major energy and industrial projects.
Rwanda Eyes Stake in Planned Kenya Refinery
The Dangote share offering comes as Rwanda is also discussing possible participation in another Dangote refinery planned for construction in Kenya.
President Paul Kagame confirmed on August 24 that Rwanda and Dangote were holding discussions about potential equity participation in the project, although he said the process was still at an early stage.
Kagame said: “Discussions have taken place to some extent, but it is still too early to provide extensive details; work is ongoing. Some aspects are still being finalized, but what I can say is that Rwanda would be pleased to participate in that investment.”
Kenya Project Could Process 700,000 Barrels Daily
The planned Kenyan refinery is expected to have a processing capacity of up to 700,000 barrels of oil per day.
The facility is expected to supply petroleum products to Kenya and other markets in East and North Africa, including Egypt, while Dangote has reportedly been seeking regional partners to participate in the project.
