BY NKECHI NAECHE-ESEZOBOR—The Securities and Exchange Commission (SEC) has directed an immediate halt to all marketing and promotional activities relating to a purported Initial Public Offering (IPO) by Dangote Petroleum Refinery & Petrochemicals FZE, warning investors that the offer has neither been filed with nor approved by the regulator.
In a public notice issued on Tuesday, the Commission said it had become aware of advertisements, digital campaigns, flyers, and targeted emails circulating across social media and investment platforms promoting an alleged public share offering by the refinery.
According to the SEC, no application for the registration of an IPO or any public offer of shares by Dangote Refinery has been submitted to or cleared by the Commission.
The regulator expressed concern over reports that some Registered Capital Market Operators (CMOs) were actively soliciting subscriptions and collecting investor commitments for the purported offer.
It described the activities as misleading and capable of creating false market expectations, information asymmetry, and risks to the integrity of Nigeria’s capital market.
The Commission noted that invitations encouraging investors to create accounts, pre-fund subscriptions, or secure guaranteed share allocations amounted to market manipulation and constituted serious violations of the Investments and Securities Act.
Consequently, the SEC directed all registered market operators, including stockbrokers and digital investment platforms, to immediately cease the publication, distribution, or promotion of any materials related to the alleged offering.
The regulator also ordered operators to remove all unauthorized promotional content from websites, social media platforms, and messaging channels within 24 hours of the notice.
In addition, the Commission instructed operators to stop accepting deposits, account openings, expressions of interest, or any form of commitment linked to the purported IPO. Any funds already collected from investors in connection with the offering must be refunded within 24 hours.
The SEC warned that failure to comply with the directive would attract sanctions under the Investments and Securities Act, 2025, and the Commission’s Rules and Regulations.
The regulator advised investors to exercise caution and rely solely on official communications issued through SEC-approved channels when considering investment opportunities.
It further urged members of the public to disregard high-pressure marketing tactics and requests for fund transfers tied to any “pre-IPO” placement, stressing that such activities have not received regulatory approval.
The Commission assured investors that should Dangote Refinery eventually submit and obtain approval for a public offering, an official prospectus would be released in accordance with the provisions of the Investments and Securities Act, 2025.
