SEC warns investors against fake Dangote refinery IPO channels

The Securities and Exchange Commission (SEC) has warned investors to be wary of fraudulent platforms and unauthorised agents seeking to collect applications or funds for the Dangote Petroleum Refinery IPO.

The warning came on Monday as subscription opened for the refinery’s public offer, which is expected to attract significant interest from retail and institutional investors.

The Commission said investors should not assume that a website, digital platform, company or social media account offering access to the shares is authorised to handle the transaction.

According to the SEC, prospective investors should obtain information about the offer only through its official channels, the issuer’s official channels and other channels specifically approved for the transaction.

It also urged investors to confirm that the platforms of their chosen Capital Market Operators are registered and authorised to receive applications for the offer.

The regulator specifically cautioned against unsolicited calls, WhatsApp messages, social media advertisements and emails promising investors guaranteed allotments or preferential allocation of Dangote Refinery shares.

The SEC said the mere existence of an individual, company, digital platform or social media account does not amount to approval to receive applications or funds from investors.

The warning is coming as the Dangote Refinery IPO opens to the public, with the company offering 4.1 billion new ordinary shares at ₦525 per share.

The minimum subscription is 10 shares, putting the minimum entry at ₦5,250, while the offer is targeted at raising about ₦2.15 trillion.

The Commission advised investors to read the approved prospectus carefully and understand the terms, conditions and risks of the investment before subscribing.

It further advised prospective investors who require assistance to seek guidance from SEC-registered stockbrokers, banks or registered investment advisers.

The SEC’s warning comes against the backdrop of earlier unauthorised promotions surrounding the Dangote Refinery share sale, making verification of subscription channels particularly important as the official offer gets underway.

Investors have therefore been advised to rely on the approved offer documents and authorised channels rather than respond to unsolicited offers or transfer funds to individuals or platforms claiming to guarantee access to the shares.