Dangote Refinery IPO Traffic Surge Disrupts Bamboo, Cowrywise.
The much-anticipated Dangote Refinery initial public offering (IPO) got off to a busy start on Monday, with a surge of investor interest reportedly putting pressure on investment platforms Bamboo and Cowrywise.
Both platforms acknowledged experiencing unusually high traffic as investors rushed to participate in the share offering.
Bamboo said the heavy traffic was making it difficult for some users to access its app, as customers attempted to subscribe to shares in the Dangote Refinery.
Cowrywise also confirmed that it was experiencing an unusually high volume of traffic. In a post on X, the investment platform assured users that its team was working to restore normal service.
“We’re currently seeing more traffic than usual on the Cowrywise app. Our team is already on it and working to get things back to normal. Thanks for your patience, everyone,” the company said.
The platform disruptions came as the Dangote Refinery officially opened its IPO on Monday. The offer consists of 4.1 billion ordinary shares priced at N525 per share and will remain open until October 13.
If fully subscribed, the share sale is expected to raise approximately N2.15 trillion, making it one of the most significant capital-market offerings in Nigeria.
Investors can participate with a minimum subscription of 10 shares, requiring an investment of N5,250.
The offer also includes a greenshoe option, which gives the underwriters the ability to sell an additional 30 per cent of the shares initially offered if demand exceeds expectations.
Dangote targets millions of retail investors
The IPO is not only about raising capital. Dangote Industries is also looking to significantly broaden ownership of the refinery by bringing millions of everyday Africans into its shareholder base.
Aliko Dangote, Group Chairman of Dangote Industries, said at the signing of the offer documents in Lagos last week that the company hopes to attract 10 million African retail investors.
The target includes people from different walks of life, ranging from cooks and drivers to traders and managers.
The move is part of an effort to make the investment opportunity more accessible to ordinary Nigerians and other African investors.
What the IPO means for the refinery
The Dangote Refinery currently has a processing capacity of 700,000 barrels of crude oil per day. The company plans to increase this capacity to 1.4 million barrels per day by 2030.
Funds raised through the IPO will help finance the refinery’s planned expansion as it seeks to strengthen its position as one of Africa’s largest refining facilities.
The rush to subscribe on the first day also shows the level of interest the offering has generated among retail investors. However, the difficulties experienced by Bamboo and Cowrywise highlight the challenge investment platforms can face when thousands of users attempt to access their services at the same time.
With the offer running until October 13, investor activity is likely to remain high as more Nigerians consider taking a stake in the Dangote Refinery.
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