The Capital Markets Authority (CMA) has warned Kenyans against investing in the Dangote Refinery Initial Public Offering (IPO) through unverified channels, noting that the share sale has not been approved in Kenya.
In a public notice obtained by Vantage Ke on Monday, September 21, the regulator said information about the IPO had been circulating, prompting a warning to potential investors to exercise caution before making any transactions.
CMA clarified that the IPO is regulated under Nigerian law and has not been submitted to the Kenyan regulator for consideration or approval.
“The Capital Markets Authority (CMA) notes the information circulating in relation to the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering (IPO),” CMA warned.
Adding, “This public offer is regulated in Nigeria and has not been submitted for consideration and approval by CMA under the applicable Kenyan legal and regulatory framework.”
The authority urged Kenyans to independently confirm the authenticity and source of any prospectus or offering document before making payments, investing, or providing personal and financial information.
The warning comes days after Dangote Refinery launched what has been described as Africa's largest-ever IPO on the Nigerian Exchange (NGX) on September 14.
The company is seeking to raise more than Ksh211 billion (USD1.63 billion) through the sale of 4.1 billion new ordinary shares priced at Ksh5 each.
The offer is scheduled to close on October 13, with trading expected to begin in late November. Investors can participate with a minimum purchase of 10 shares, requiring about Ksh51, while the offering values the company at up to Ksh6.4 trillion.
Speaking to Kenyan CNN journalist Larry Madowo on Monday, Dangote said the IPO was open to investors beyond Nigeria, noting that it had attracted significant interest from across Africa.
Dubbed the ‘People's IPO’, the offering uses digital and fintech channels to lower the barrier to entry for investors. Dangote said the initiative was intended to widen participation in African stock markets.
“Well, I think it's an IPO not only for Nigerians. We've got a lot of interest from all over Africa, and we're selling shares, we're trying to bring in democracy to our stock markets,” Dangote stated.
Dangote also expressed confidence that the offering could attract 10 million shareholders. He said annual general meetings could be held in a stadium and maintained that the funds required had already been raised.
CMA has consequently advised prospective investors to rely only on official communication from regulators, issuers and authorised channels.
The regulator further directed Kenyans seeking to participate in capital markets investments to transact only through licensed capital markets intermediaries listed on licensees.cma.or.ke.
