Botswana Investors Offered Access to Dangote Refinery Shares Through BSE

Botswana Investors Offered Access to Dangote Refinery Shares Through BSE. Access Bank Botswana has opened an offer giving local investors an opportunity to gain exposure to Nigeria’s Dangote Petroleum Refinery and Petrochemicals through Botswana Depository Receipts (BDRs) listed on the Botswana Stock Exchange (BSE).

The offer opened on 16 October and closes at noon on 27 October. Up to 1.298 billion BDRs are available at an indicative price of P5.85 each, which would place the total offer value at approximately P7.6 billion if fully subscribed.

Each BDR represents one ordinary share in Dangote Petroleum Refinery and Petrochemicals FZE (DPRP). Access Bank is acting as the depository and issuer of the BDRs, providing Botswana investors with a route to the Nigerian company without directly trading its shares on the Nigerian market.

The offer forms part of DPRP’s initial public offering, which includes up to 4.1 billion ordinary shares. Access Bank will submit an aggregated application for the underlying shares based on valid BDR subscriptions, subject to a maximum aggregate amount of US$500 million.

The underlying shares will be held for the benefit of BDR holders, with Access Bank plc in Nigeria appointed as custodian. The BDRs have also been granted local asset status by the Non-Bank Financial Institutions Regulatory Authority.

According to the offer timetable, results are scheduled to be published on 17 November, while the underlying shares are expected to be credited to the custodian by 2 December. The BDRs are scheduled to list on the BSE on 14 December, subject to applicable conditions.

Investors face risks including currency fluctuations involving the Botswana pula, Nigerian naira and US dollar. Nigerian foreign-exchange controls could also affect the timing or repatriation of distributions, while BDR values may differ from those of the underlying shares.

Applications must be for a minimum of 100 BDRs, equivalent to P585, and must be paid in full. Access Bank has advised investors to review the prospectus before applying. The offer may be cancelled if subscriptions do not reach the minimum equivalent of US$1 million.