PIC seeks R8.4bn in shares in Dangote refinery IPO

Detailed summary

SA’s biggest asset manager joins Nigerian pension-fund administrators seeking nearly $1bn in Africa’s largest planned IPO.

Africa’s biggest money manager and Nigerian pension-fund administrators applied for almost $1 billion of shares in Dangote Petroleum Refinery and Petrochemicals FZE, according to people familiar with the matter.

The Public Investment Corp, which oversees almost $220 billion in assets, including pensions for South African state workers, asked for about $500 million of shares in the initial public offering, said the people who asked not to be identified as the information is still private.

Dangote refinery seeks to raise between $1.6 billion and $2.1 billion in the continent’s biggest IPO to date.

Read: Dangote’s African refinery ambitions to take centre stage at Mining Indaba

Aliko Dangote, Africa’s richest man, could consider selling down some of his own stake in his Lagos refinery to meet the request in a secondary sale, said the people.

Nigerian pension administrators operating in the nation’s Contributory Pension Scheme system — which has about 11 million members spread across 20 funds — have applied for about $400 million to $500 million of shares in the continent’s top oil refinery, part of which was covered by an earlier private placement, said the people, declining to identify the funds.

Dangote didn’t respond to a request for comment. The PIC declined to comment. A spokesperson for the Pension Fund Operators Association of Nigeria, the umbrella body for the retirement-fund industry, didn’t respond to a request for comment.

Read: Dangote Refinery IPO set for record on African and global demand

The IPO values the processing complex at about $50 billion, with the company receiving close to 4 million unique subscription applications.

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