The Ethiopian Capital Market Authority has announced tough rules governing the sale of Dangote Petroleum and Petrochemicals securities within Ethiopia. In a notice issued on October 13, the Authority said the offering can only be sold to qualified investors and cannot be marketed to the general public. Any unauthorized sales to ordinary members of the public would breach Ethiopian capital market law and could trigger regulatory action.
The restrictions mean that only investors meeting specific legal criteria can participate. The number of investors cannot exceed 100 unless the Authority approves a higher number in advance. All marketing materials and offering documents must clearly state that the securities are available only to qualified investors, not the broader public.
The rules stem from Ethiopia's Capital Market Proclamation and its Public Offer and Trading of Securities Directive. All parties involved in selling or promoting the securities, including intermediaries and agents, must verify that each buyer meets the qualifications required by law. The Authority stressed that regulatory approval does not mean it backs the investment or guarantees the securities will perform well.
Dangote Petroleum is owned by Nigerian investor Aliko Dangote. The group's refinery, which cost about $20 billion to build, started operating in 2024 and can process 700,000 barrels of crude oil daily. The broader IPO globally plans to offer 4.1 billion shares at 525 naira each to raise roughly $1.6 billion.