Kenyan investors participating in the Dangote Petroleum Refinery Global Depositary Receipt (GDR) offer face potential refunds if the East African tranche fails to meet its minimum subscription threshold, according to offer documentation released by regulators.
The Kenyan regulator has stipulated that the GDR offer must achieve a minimum success threshold of 50 million Kenyan shillings to proceed. If subscriptions fall below this level, all funds received from Kenyan investors would be refunded without interest, protecting investors from forced participation in an undersubscribed offering.
The Dangote Refinery GDR offer, which targets 39 billion Kenyan shillings ($300.4 million) from East African investors, represents nearly 20% of the refinery’s broader IPO target of at least $1.6 billion. The application list for the Kenyan tranche closes on October 13, with allotments expected around November 12.
Each GDR represents one underlying share in Dangote Petroleum Refinery & Petrochemicals FZE, priced at 53.50 Kenyan shillings per receipt. The minimum subscription requirement is 2,000 GDRs with subsequent applications in multiples of 100.
Kenya’s Capital Markets Authority (CMA) approved the GDR structure to enable eligible Kenyan investors to participate in the refinery’s public offering through negotiable certificates representing shares in the Nigerian company. The approval responded to growing interest from Kenyan investors and capital market participants seeking structured access to the offering through their domestic exchange.
Stanbic Bank is serving as custodian and receiving bank for the Kenyan offer, while Renaissance Capital (Kenya) Ltd. and Lagos-based Renaissance Capital Africa are jointly advising on the transaction. The GDRs are scheduled to list on the Nairobi Securities Exchange approximately 15 business days after allotment.
Uganda’s Capital Markets Authority has also authorised promotion and distribution of the IPO to investors in that country, expanding East African access to the offering beyond Kenya.
