Shareholders Oppose $350,000 Minimum Subscription For Dangote Refinery IPO

Shareholders associations in Nigeria have urged Dangote Refinery and Petrochemicals Plc to review the proposed terms of its anticipated Initial Public Offering (IPO), calling for a lower minimum investment threshold and a dedicated allocation for retail investors to ensure broader public participation.

The shareholders argued that the reported minimum subscription requirement of one million shares, valued at approximately $350,000 at the proposed offer price of $0.35 per share, would effectively shut out most retail investors.

They also opposed the proposed 365-day lock-up period, describing it as unattractive to individual investors.

The appeal follows market reports indicating that Dangote Refinery’s planned public offering could involve about three billion ordinary shares at a proposed price of $0.35 each. Reports also suggest that investor commitments have already exceeded $2bn, reflecting strong demand for what is expected to be one of Nigeria’s biggest capital market transactions.

However, minority shareholders warned that unless the offer structure is reviewed, the IPO could be dominated by institutional investors, pension fund administrators and high-net-worth individuals, leaving ordinary Nigerians with little opportunity to invest in what they described as a strategic national asset.

Speaking exclusively with THE WHISTLER, President of the Dimensional Shareholders Association, Mr. Patrick Ajudua, said shareholders welcomed the planned listing but expressed concerns over the proposed entry requirements.

“We welcome the proposed listing of Dangote Refinery shares, but we will request a reduction in the proposed price of $0.35 and the minimum subscription of one million shares. At $350,000, I strongly believe that most retail investors will be unable to meet the requirement,” Ajudua said.

He also criticized the proposed one-year lock-up period, saying it was a major deterrent for retail investors.

“The fact that the shares are expected to be locked up for 365 days is strictly a red line for retail investors. It is our appeal that Alhaji Aliko Dangote will be magnanimous enough to accommodate the concerns of retail investors who have long been waiting for the listing of these shares,” he added.

Similarly, the Independent Shareholders Association of Nigeria (ISAN), through its National Coordinator, Moses Igbrude, called on Dangote Refinery, the Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX) to reserve a defined portion of the IPO exclusively for Nigerian retail investors.

According to the coalition, a dedicated retail tranche would ensure wider local ownership and prevent the offering from being absorbed almost entirely by institutional investors.

“The IPO represents a historic opportunity for Nigerians to own a direct stake in a strategic national asset. Without a reserved retail allocation, the offering risks being dominated by institutional fund managers, pension funds and high-net-worth investors already mobilising substantial capital ahead of the listing,” the coalition stated.

The group noted that Aliko Dangote had consistently described the refinery as a project built by Nigerians for Nigerians, arguing that the IPO should reflect the same philosophy by allowing ordinary citizens to become shareholders rather than merely consumers of its products.

It further maintained that reserving shares for retail investors would deepen public participation in Nigeria’s capital market, strengthen investor confidence and create a broader base of long-term shareholders committed to the refinery’s growth.

The coalition also cited international best practices in major strategic asset listings, where retail investor allocations are commonly incorporated to promote financial inclusion, broaden ownership and improve market stability.

It urged the SEC and NGX to engage with the issuer to establish and publicly disclose a transparent retail allocation framework before the IPO opens, in line with the Investments and Securities Act 2007 and the SEC Rules on Public Offerings.

Under the reported offer structure, investors would be required to subscribe for a minimum of one million shares, with additional subscriptions accepted in multiples of 500,000 shares. The proceeds from the IPO are expected to finance expansion projects and support the refinery’s continued growth as it scales production and strengthens its position in regional and international energy markets.