Most institutional investors are expected to wait until the final week of the Dangote Petroleum Refinery and Petrochemicals public offer before submitting their bids, a move that could mean early retail interest does not yet provide a full picture of effective demand for the shares.

Executive Director, Halo Capital Management Limited, Dr Paul Uzum, said institutional investors and high-net-worth individuals (HNIs) were unlikely to rush into the offer because the one-month subscription period gives them time to plan their investments and manage their liquidity before the October 13 closing date.

He said many HNIs could keep their funds in short-term fixed deposits or call deposit accounts during the offer period, earning interest before withdrawing the money towards the end of the subscription to place their bids.

The development comes as operators continue to introduce alternative channels to make subscription easier for investors, particularly those seeking to avoid busy digital investment platforms.

One of the latest options is a WhatsApp subscription channel created by InvestNaija by Chapel Hill Denham, allowing investors to apply for the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering (IPO) through a platform they already use.

The process requires investors to send “DPRP” to 0911 100 5998 to begin. They are then required to provide their Bank Verification Number (BVN), after which their identity is confirmed either through a token or bank-detail verification.

Subscribers subsequently select the number of shares they wish to purchase, confirm their application and complete payment through a link provided.

The WhatsApp channel is designed to enable investors to subscribe without downloading another application or navigating an unfamiliar website. InvestNaija also offers mobile and web platforms.

Chapel Hill Denham, one of the joint issuing houses for the transaction, is partnering with various digital platforms to widen access to the offer.

This includes PiggyVest, which is leveraging its more than 6.6 million users to provide access to the IPO.

Flutterwave, meanwhile, is providing payment infrastructure for some of the subscription channels, acting as a licensed receiving agent for the offer and enabling resident and diaspora investors to fund their subscriptions in naira.

Existing users of its Send App and Flutterwave for Business platforms can subscribe directly, while investors without bank accounts can be issued Flutterwave Microfinance Bank accounts to facilitate participation.

The approach echoes Chapel Hill Denham’s role in Nigeria’s first fully digital public offer for MTN Nigeria in December 2021, which closed 139 per cent oversubscribed.

The Dangote IPO has also highlighted growing interest among retail investors in the Nigerian equities market, while demonstrating how technology is lowering some of the traditional barriers to capital-market participation.

From conventional investment platforms to savings applications, payment providers and WhatsApp, investors now have multiple channels through which they can access the offer.

Early retail interest has already generated significant attention around the Dangote Refinery offer, with investment platforms reporting strong traffic from individuals seeking to participate.

However, Uzum said subscription figures recorded during the opening days should not be regarded as the final measure of investor demand.

He said institutional investors and HNIs could increase their participation significantly as the October 13 closing date approaches.

The development also highlights the different investment strategies adopted by retail and institutional investors.
While smaller investors may seek to secure their participation early, larger investors can use the full offer period to manage liquidity and determine when to deploy their funds.