Dangote Sugar in IPO Bid
 3rd NOV 2006

DANGOTE Sugar Refinery  Plc yesterday concluded arrangements to raise N54 billion by way of Initial Public Offering (IPO), the highest money to be raised in the history of the Nigerian capital market by a manufacturing company.

The company also appointed 11 Joint Issuing Houses to the offer, of which First City Monument Bank (FCMB) Capital Markets Limited, IBTC Chartered Bank Plc, Vetiva Capital Management Limited are among the leading Issuing Houses. Others include: Access Bank Plc, BGL Securities Limited, Ecobank Nigeria Plc, FBN Capital Markets Limited, Fidelity Bank Plc, Intercontinental Capital Markets Limited, Oceanic Bank International Plc and Zenith Bank Plc.

At the completion Board Meeting held on Wednesday, the directors of Dangote Industries Limited, all the parties to the issue as well as regulatory authorities endorsed the offer.
Dangote Sugar Refinery Plc is offering IPO by way of an offer for sale of three billion ordinary shares of 50 kobo each at N18.00 per share. Speaking at the meeting, Chairman of Dangote Industries Limited, Alhaji Aliko Dangote said that the offer is being undertaken to give investors an opportunity to become part owners of Dangote Sugar, the market leader in the Nigerian sugar industry, which is currently 99 per cent owned by Dangote Industries Limited.

According to him, “The IPO will also enable the company meet the requirements for listing on the Nigerian Stock Exchange (NSE). The Dangote Industries is offering only 30 per cent of its authorised share capital to the general public while 70 per cent is still being held by Dangote Industries. We want many Nigerians to benefit from the profit the company would be making as we shall pay dividend to shareholders next year. We want many people to have stake in the company that is why we have put the minimum subscription to 500 ordinary shares and multiples of 50 ordinary shares thereafter”.
The IPO is being fully underwritten by Joint Underwriters.

 The underwriters are First City Monument Bank Plc, First Bank of Nigeria Plc, Intercontinental Capital Markets Limited, Oceanic Bank International Plc, Zenith Bank, IBTC Chartered Bank, Vetiva Capital Management Limited, Access Bank Plc, Skye Bank Plc, BGL Limited, Ecobank Nigeria Plc, and Fidelity Bank Plc.

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