BSE Advances Dangote IPO Access for Local Investors

The Botswana Stock Exchange (BSE) recently engaged Dangote (fourth from left) and local asset managers alongside pension funds ahead of the IPO.

The BSE is reportedly close to finalizing a deal that would grant local investors direct access to the Dangote Petroleum Refinery & Petrochemicals Initial Public Offer, Africa’s largest float of shares, expected to raise up to $2 billion.

The Dangote group intends to use IPO proceeds to expand into energy and other opportunities, including a pipeline through Botswana.

Local pension funds, holding more than P176 billion, have expressed strong interest in accessing the IPO following direct petitions made to Dangote during a recent Gaborone visit.

The IPO is forecast to deliver dollar-based returns at market-beating rates, supported by the existing 700,000-barrel-per-day plant outside Lagos.