Nairobi — The minimum investment required for Kenyan investors to participate in Dangote Petroleum Refinery and Petrochemicals' initial public offering (IPO) has been reduced by 99.5 percent to Sh535, lowering the entry barrier ahead of the offer's October 13 deadline.
Renaissance Capital, the issuer of the Kenya Global Depositary Receipts (GDRs), has revised the minimum subscription from 2,000 receipts to 10, with each receipt priced at Sh53.50.
The change cuts the minimum application amount from Sh107,000 to Sh535, allowing investors to gain exposure to the Nigerian refinery without committing the larger sum initially required under the Kenyan investment route.
The revision follows feedback from investors and approval from the Capital Markets Authority (CMA), according to the announcement by Renaissance Capital.
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It also aligns the Kenyan offer's minimum subscription with the entry threshold under the Nigerian IPO.
"This revision aligns the Kenya GDR with the minimum investment under the Nigeria IPO, enabling wider participation by investors."
"The reduction in the minimum investment threshold follows feedback from the investor community, high market demand and approval from CMA."
The lower threshold could expand participation among retail investors who were previously unable to meet the minimum subscription requirement.
However, the reduced entry cost does not guarantee returns, and investors will still need to consider transaction charges, the risks associated with the investment and the terms outlined in the offer documents.
The Kenyan offer involves up to 728.97 million GDRs priced at Sh53.50 each, representing an avenue to invest in the refinery through a local-market instrument rather than purchasing the underlying shares directly on Nigeria's capital market.
The CMA approved the short-form prospectus submitted by Renaissance Capital (Kenya) Limited on October 5, enabling eligible Kenyan investors to participate through the GDR structure.
The offer opened on October 6 and is scheduled to close at 5pm on Tuesday, October 13, 2026.
Investors are required to apply through the designated official channels and should review the amended Information Memorandum and supplementary information dated October 9 before committing funds.
The minimum subscription reduction comes as Dangote Refinery seeks to raise funds through a wider share sale in Nigeria, while the Kenyan GDR route provides local investors with access to the cross-border investment opportunity.
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A GDR is a financial instrument representing shares in a foreign company, enabling investors to access securities through another market under the applicable regulatory framework.
