By TAIYE OLAYEMI

Mr David Adonri, Vice President of Highcap Securities, has advised potential investors not to be deterred by concerns over possible oversubscription of the ongoing Initial Public Offering (IPO) by Dangote Petroleum Refinery and Petrochemicals (FZE).

Adonri told the News Agency of Nigeria (NAN) on Sunday in Lagos that the IPO had yet to close and be reconciled.

He added that any expectation of oversubscription therefore remained speculative.

He, however, encouraged investors to continue to subscribe to the IPO, noting that the issuer had indicated that retail investors would be given priority during allotment.

“There is no risk in trying. Prospective investors should not be discouraged from subscribing to the ongoing Dangote Refinery IPO for fear of oversubscription.

“The assumption that it will be oversubscribed is merely speculative, as the IPO is yet to close and be reconciled,” he said.

According to him, the measure is aimed at ensuring broad ownership of the shares among members of the investing public.

Adonri described the IPO as a rare opportunity for retail investors to own a stake in a global company with far-reaching implications for Africa’s economy.

He said the IPO also presents an opportunity for investors to acquire a stake in the refinery at an attractive price.

NAN reports that the Dangote Petroleum Refinery and Petrochemicals FZE IPO opened on Sept. 14 and will close on Oct. 13.

The public offer consists of 4.1 billion ordinary shares priced at N525 per share, targeting about N2.15 trillion. (NAN)