All stockbroking firms have fully activated multiple channels, including nationwide physical offices and electronic platforms to ensure that subscribers to the initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) have a seamless experience.
Stockbrokers yesterday said buying the IPO shares through established capital market operators like stockbroking firms have several advantages.
Chartered Institute of Stockbrokers (CIS) and Association of Securities Dealing Houses of Nigeria (ASHON) said all stockbroking firms licenced by the Securities and Exchange Commission (SEC) are accredited receiving agents for the offer.
They called on investors to approach and submit their applications through the stockbroker of their choice.
They said: ‘This gives both existing and first-time investors access to professional guidance and the flexibility to participate through an intermediary they know and trust’.
Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe said there were several advantages in dealing with stockbroking firms.
He outlined that investors can open their investment accounts with the Central Securities Clearing System (CSCS) directly through the stockbrokers.
‘If you encounter challenges with your shares, stockbrokers are the ones that can sort it out for you. If you need to sell your shares or buy more, they are the ones that can do it for you. They are the ones that have been specifically trained to advise on shares and stocks. Most of them have electronic platforms that enable you buy shares and trade shares without leaving the comfort of your home of offices and they can help you administer and manage your stock portfolio in order to increase your returns while reducing your risks,’ Amolegbe said.
CIS and ASHON described the IPO as a significant development for Nigeria’s capital market and an opportunity for Nigerians to participate in the ownership of a strategically important national enterprise.
The two bodies noted that the refinery’s integrated refining and petrochemicals model, its scale and its role in domestic energy supply give the business strategic relevance to Nigeria.
They added that the enterprise has the potential to support import substitution, foreign-exchange earnings, industrial development and greater economic participation through the capital market.
President of CIS, Dr Fiona Ahimie, said: ‘The proposed listing is a welcome development for Nigeria and for our capital market. The refinery combines a strong integrated business model with the scale and strategic importance required to contribute meaningfully to the country’s energy security and industrial growth. It also gives Nigerians an opportunity to participate in the ownership of an important national enterprise. Investors with a long-term outlook should consider being part of this opportunity.’
Ahimie added that the offer could help strengthen public participation in wealth creation and deepen understanding of how the capital market connects Nigerian savings with productive enterprise. She said the nationwide network of licensed stockbrokers is available to explain the offer process and help investors participate smoothly.
Chairman of ASHON, Sehinde Adenagbe, said: ‘Bringing an enterprise of this scale to the public market broadens participation, supports wealth creation and adds depth to Nigeria’s investment landscape. The stockbroking community welcomes the offer and is ready to support a seamless process so that investors across the country can take part.’
CIS and ASHON said wide and inclusive participation would allow more Nigerians to share in the growth of a major indigenous enterprise while reinforcing the capital market’s role in funding businesses of national importance. Stockbrokers can assist existing investors with their Central Securities Clearing System account and Clearing House Number details, while also guiding first-time investors through the account-opening and application process.
As with every equity investment, prospective investors should read the approved offer documents and participate at a level consistent with their financial circumstances and long-term objectives. Professional guidance is available from SEC-registered stockbrokers where clarification is required.
CIS and ASHON expressed support for a successful offer and listing, saying that broad participation would strengthen Nigeria’s investment culture, expand local ownership and contribute to the continued development of the capital market.