Felix Onyeka
THE Securities and Exchange Commission (SEC) has warned investors against fraudulent platforms and unauthorised agents seeking to receive applications or funds for Dangote refinery’s initial public offering (IPO).
The commission issued the warning on Monday as the IPO opened for subscription, urging investors to use only officially approved receiving agents and subscription channels.
“Obtain information about the IPO only from the SEC official channels, Issuer’s official channels, and other official channels established and approved for the IPO,” the SEC said.
The commission advised investors to verify the authenticity of websites, platforms, and links before providing personal or financial information.
“Verify that their chosen registered Capital Market Operator’s channels/platforms for the offer are duly authorised and approved,” the commission said.
“Avoid responding to unsolicited calls, WhatsApp messages, social media advertisements, emails or other channels/platforms that offer or guarantee allotments or preferential allocation.”
The SEC urged investors to follow the officially announced subscription process and IPO timetable and avoid transferring funds to anyone claiming to receive applications outside approved channels.
“The existence of an individual, company, digital platform or social media account does not, by itself, constitute approval or authorisation to receive applications or funds from investors in respect of the Offer,” the SEC said.
“Carefully read the approved Prospectus and understand the terms, conditions and risks associated with the investment before making any subscription.”
The regulator said prospective investors who require guidance should contact SEC-registered stockbrokers, banks or registered investment advisers.
Advocate Times reported that Vetiva Advisory Services is the lead issuing house for the transaction. Other joint issuing houses include First Cap, Chapel Hill Denham, Absa Capital Markets, Afrinvest Capital and Stanbic IBTC Capital.
Addressing investment bankers and the investing public last week in Lagos, the President of Dangote Group,Aliko Dangote,said the refinery plans to bring in 10 million African retail investors, “from cooks and drivers to traders and managers,” to deepen financial inclusion.
The minimum subscription is 10 units, equivalent to N5,250. The offer also includes a green shoe option that allows underwriters to sell an additional 30 per cent of shares if the IPO is oversubscribed.
