An offering of Dangote Petroleum and Petrochemicals shares has been proposed for Ethiopia, with participation restricted to qualified investors, according to the Ethiopian Capital Market Authority (ECMA).
In a public notice issued today, the Authority said it had been approached about the proposed offering in connection with the company’s initial public offering (IPO).
Any offering, marketing, solicitation or sale of the securities in Ethiopia must be conducted exclusively to qualified investors, as defined under Ethiopian capital market laws and directives, ECMA noted. “The proposed offering does not constitute an offer to the general public in Ethiopia,” the notice stated.
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Participation would be limited to no more than 100 qualified investors unless prior approval is obtained from the Authority. Those involved in distributing, marketing or placing the securities must verify and document each prospective investor’s qualified status before allowing participation.
Offering documents, promotional materials and other communications must clearly state that the offering is restricted to qualified investors and unavailable to the general public. Solicitation advertisements require ECMA’s approval before publication.
The Authority also said general solicitation, mass marketing or public advertising must not be conducted in a manner that could make the offering available to people outside the qualified-investor category.
The notice comes a day after Dangote announced an extension of the subscription period for its wider IPO. In its October 12 announcement, the company said the offer, which opened on September 14 following approval from Nigeria’s Securities and Exchange Commission, would close on October 27 instead of October 13.
The IPO comprises 4.1 billion ordinary shares offered at 525 Nigerian naira per share. Dangote said the extension would support efforts to broaden investor access across African jurisdictions and give prospective participants additional time to complete account-opening, identity verification and regulatory requirements.
ECMA cautioned that authorization for an offering to qualified investors should not be interpreted as its endorsement of the securities, the issuer, the IPO or its investment merits, or as a representation about the securities’ future value or performance.
Qualified investors remain responsible for reviewing offering documents, assessing the risks and making their own investment decisions, the Authority said.
Offers or sales outside the permitted framework, including sales to the general public without the required registration, approval or exemption, may violate Ethiopian capital market laws and result in regulatory action, ECMA said.
