Investors have until Tuesday to make their offer for Dangote refinery shares through either; arrangements with accredited brokers who are working with partners in Nigeria or purchase global depository receipts (GDRs), which will subsequently list on the Nairobi Securities Exchange (NSE).
Through engagements with the Capital Markets Authority (CMA) and Renaissance Capital-the lead sponsoring broker for the GDR programme on Dangote shares-the Business Daily details how brokers will buy and trade Dangote shares through the NSE.
A global depository receipt (GDR) is an instrument enabling foreign companies to raise capital by allowing investors to trade non-domestic shares on local exchanges. In the case of the Dangote IPO, investors in Kenya will acquire the receipts representing the underlying shares approved and listed in the Nigerian Stock Exchange (NGX).
What’s the total cost of ownership for an investor purchasing the receipts?
The minimum subscription of 10 GDRs in the programme at the price of Sh53.50 per unit, which rounds off to Sh535, represents the total cost of ownership to an investor as no additional processing fees are charged above the consideration for units.
An investor buying into the programme will, however, part with a custody fee of 0.16 percent per annum, pro-rated monthly.
The offer price of Sh53.50 factors both Forex pass through costs from the conversion of Kenya Shillings into Naira and includes additional costs related to the programme such as transaction advisory, placement commission and legal counsel fees.
Why did the GDR programme revise the minimum investment from Sh107,000 to Sh535?
Proponents of the programme including the capital markets regulator and the sponsoring broker previously acknowledged that plenty of investor education would be required if the minimum investment threshold was set at a more mass-market level which would have drawn in tens of thousands of novices and even first-time investors into a new instrument.
However, after investor feedback including high demand for the units, the programme has been revised to set the floor for investing at 10 GDRs from 2,000 previously. The previous cost to an investor would have started at a Sh107,000 floor.
The GDR programme now matches the Nigeria IPO where the minimum subscription to Dangote shares is set at 10 units.
What’s the advantage of GDRs over getting the shares from accredited brokers?
By trading on the Nairobi Securities Exchange (NSE), post issuance, from December 2,2026, the proponents of the programme reckon this to be an advantage to investors, by allowing trading visibility.
The listing of the instrument in Kenya shillings also removes Forex exchange concerns from investors.
The GDR price of Sh53.50 is viewed as competitive to the alternative broker arrangements with access to the IPO in Nigeria through partners. The brokers offer prices between Sh54 and Sh57 as of last week.
What rights do I have as a GDR holder?
An investor holding Dangote shares through GDRs will have similar rights to an investor holding the actual shares in Nigeria as the programme allows for voting rights and will hold annual general meetings (AGMs) or special convened meetings to relay shareholder information relating to the Dangote refinery including voting on key matters.
At the same time, a GDR holder will be able to receive dividends from the investment which will be paid out in US dollars. Dividends from Nigeria however attract a higher rate of withholding tax than Kenya at 10 percent.
How many GDRs can I buy through the NSE?
Upon listing, the GDRs will trade on the NSE like any other ordinary share. This means that the one share rule also applies allowing an investor to buy or sell as little as just one GDR unit.
The prevailing price of the GDRs at the NSE will be determined by the underlying performance of Dangote shares at the NGX, changes in foreign exchange and the underlying demand of the receipts in Kenya.
The proponents of the offer expect the daily opening price of the GDRs at the NSE to match the closing price of Dangote shares at the NGX.
What if inadequate GDRs are available on the NSE?
The programme can create more GDRs by buying Dangote shares in the open market in Nigeria.
Will I incur Nigeria’s capital gains tax when I sell my GDRs?
No. The GDRs are exempt from capital gains tax (CGT) being instruments listed on the NSE.
Do my depository receipts have an expiry date?
No. The GDR programme is open ended meaning that the units will trade on the NSE in perpetuity.
The GDRs could, however, delist in the future under special circumstances such as when the shares of the Dangote refinery in Nigeria are cross listed on the NSE. This would mainly be resolved through the conversion of the units into shares. The issuance of the GDRs on a 1:1 ratio with Dangote shares means this conversion would take place seamlessly.
What are the key dates for the GDR offer?
The offering for the GDR programme runs alongside the Dangote IPO in Nigeria which closes on Tuesday, October 13, 2026. Investors have until 5:00pm EAT on Tuesday to apply to the GDR programme.
The allotment of units in the offer will take place on November 11 while settlement runs from November 12 to December 2, 2026.
The GDRs will be admitted and start trading on the NSE from December 8, 2026.