The Securities and Exchange Commission (SEC) has approved the proposed N2.15 trillion initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE, clearing the way for the company to proceed with the final stages of the offer.

The approval, conveyed in a letter to the Lead Issuing House, Vetiva Advisory Services Limited, was signed by SEC Director of Securities and Investment Services Department, Abdulkadir Abbas.

Under the approved offer, Dangote Petroleum Refinery will issue 4.1 billion ordinary shares at N525 per share, translating to an initial offer size of N2.15 trillion. The SEC also approved the company’s existing 120.13 billion ordinary shares.

The approval clears the refinery’s draft offer documents and authorises the company to proceed with its Completion Board Meeting and Signing Ceremony, according to a statement confirming the development.

Sources close to the transaction said the board meeting and signing ceremony are expected to hold next week, bringing the pre-offer processes to an end and paving the way for public subscription before the end of the month.

Located in Ibeju-Lekki, Lagos, the Dangote Refinery currently has a refining capacity of 700,000 barrels per day, making it the largest single-train refinery in the world. It also operates a polypropylene plant with a capacity of 900,000 tonnes per annum.

The company has commenced an expansion programme expected to double its refining capacity to 1.4 million barrels per day, which would position it as the world’s largest refinery.

The SEC clearance is expected to create new investment opportunities in one of Africa’s largest industrial assets while further deepening Nigeria’s capital market.

Dangote Group President, Alhaji Aliko Dangote, had earlier told investors and analysts in Botswana that the IPO could open within 10 to 12 days.

He said the offering was expected to raise about $5 billion, potentially making it the largest public offering in Africa.