The Securities and Exchange Commission (SEC) has directed capital market operators to stop promoting a purported initial public offering by Dangote Petroleum Refinery & Petrochemicals FZE, following concerns that some registered operators are actively soliciting advance subscriptions despite the absence of regulatory approval.
Aliko Dangote, president of the Dangote Group, had said the refinery’s IPO would be conducted in September as investor demand continues to spike, but the SEC said in a public notice on Tuesday that no application for the registration of an IPO or public offer of shares of the refinery has been filed with or approved by the commission.
The SEC said the ongoing promotional activities are capable of misleading investors, distorting market expectations, and undermining the integrity of the capital market, and that the marketing campaign and invitations to create accounts, pre-fund, or secure guaranteed allocations amount to market manipulation. The regulator consequently directed all registered capital market operators to immediately cease publishing, reposting, or distributing promotional materials relating to the acquisition or allocation of shares in the refinery.
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