Nigerian billionaire Aliko Dangote is exploring ways to extend access to the $1.6 billion initial public offering (IPO) of his refinery to investors across Africa through partnerships with stock exchanges, although differences in regulatory requirements are complicating the effort.
Edoh Kossi Amenounve, chief executive of the Abidjan-based Bourse Régionale des Valeurs Mobilières (BRVM), disclosed this in an interview with Reuters on the sidelines of the Africa Financial Summit in Luanda.
He said discussions with African exchanges began in April at Dangote’s invitation, with the aim of enabling investors in different markets to participate in the share offering.
According to Amenounve, one option under consideration is the use of Global Depositary Receipts (GDRs), financial instruments that represent shares in a company and can be listed and traded on exchanges outside its home market.
He cited Kenya and Botswana as examples of markets where similar arrangements have been used to facilitate cross-border investment.
However, the discussions have encountered difficulties because companies seeking to offer securities across multiple African markets must obtain separate regulatory approvals in each jurisdiction.
Amenounve said the different listing requirements had made it difficult to establish a common framework for the proposed cross-border participation.
He called for greater cooperation among African securities regulators, including harmonisation of regulations and mutual recognition of regulatory approvals.
The BRVM chief executive said the technological infrastructure for cross-border trading was already available through the African Exchanges Linkage Project (AELP), but regulatory differences continued to limit its potential.
Dangote’s refinery IPO closed on Oct. 28 after attracting approximately 6.4 trillion naira ($4.77 billion) in investor demand, about three times the value of shares offered.
The offering involved 4.1 billion ordinary shares priced at 525 naira each, targeting proceeds of approximately 2.15 trillion naira, equivalent to about $1.6 billion.
The shares are expected to be listed on the Nigerian Exchange later in November, providing investors with an opportunity to trade in the refinery’s equity.
The proposed expansion to other African exchanges could widen the investor base beyond Nigeria and create additional channels for continental participation in one of Africa’s largest industrial investments.
The development also reflects broader efforts to deepen African capital markets and improve access to investment opportunities across national borders.
Separately, Amenounve disclosed that the BRVM had postponed the launch of West Africa’s first derivatives market until 2027 because of outstanding regulatory and technological requirements.
The initial products are expected to include forward contracts linked to market indices and selected stocks.
He also said the exchange expected one or two initial public offerings in 2027, while seeking to diversify its market beyond its traditional concentration in banking and telecommunications.
Amenounve identified mining, agriculture, industrialisation and energy as sectors with potential to attract more companies to African capital markets.
He said stronger regional cooperation and regulatory alignment would be essential to unlocking investment opportunities and improving the capacity of African exchanges to finance businesses across the continent.
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