Nigeria’s Dangote Petroleum Refinery initial public offering overwhelmed several digital investment platforms after subscriptions opened on 14 September. Reuters reported outages affecting Bamboo, Cowrywise and InvestNaija as retail demand surged. Reuters described the $1.6 billion transaction as Africa’s largest-ever share sale, while the Associated Press also reported disruption to investment applications. The interruptions exposed capacity constraints in technology used to channel individual investors into Nigeria’s capital market.
According to the offer terms, the offer comprises 4.1 billion ordinary shares priced at N525 each. Investors can subscribe for a minimum of 10 shares, worth N5,250. The subscription window is scheduled to close on 13 October, subject to the prospectus terms. The offer is open to retail, institutional and eligible African investors.
PLATFORMS FACED A TRAFFIC SURGE
Reuters reported that Bamboo experienced a tenfold increase in traffic within half an hour of the offer opening. The surge affected Bamboo’s systems and third-party providers, while Cowrywise and InvestNaija also experienced interruptions. Reuters said Bamboo and InvestNaija reported that their platforms were functioning normally by Wednesday; Cowrywise did not respond to its inquiries.
The Associated Press separately reported that at least two digital investment platforms were briefly unavailable. It also reported the minimum subscription of 10 shares at N525 each, putting the entry cost at N5,250. Dangote has billed the sale as a “people’s IPO” and expects about 10 million participants, many of them first-time investors, Reuters reported.
CAPACITY REMAINS THE OPERATING TEST
NGX Group chief executive Temi Popoola said demand had been so high that certain investment applications had crashed, Reuters reported. InvestNaija and some brokers, including Chapel Hill Denham, turned to WhatsApp to reach investors, according to Reuters.
The next milestone is the scheduled close of the offer on 13 October. The shares are not expected to be listed in Nigeria until November, the Associated Press reported.