The Securities and Exchange Commission, SEC, has ordered a halt to all marketing and promotion of a purported initial public offering by Dangote Petroleum Refinery & Petrochemicals FZE.
In a public notice issued Tuesday, the Commission warned that no application for an IPO by the refinery has been filed with or approved by it.
The Commission said it had noticed adverts, flyers, digital banners and targeted emails circulating on social media and investment platforms claiming to offer securities in the refinery.
It described the promotion as unauthorized, and expressed concern over the involvement of some Registered Capital Market Operators (CMOs) as an “unwholesome and manipulative exercise” of actively soliciting advance subscriptions for an offering that has not been presented to the Commission.
It said: “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 Commission added that the ongoing pre-marketing activities were “capable of misleading investors, distorting market expectations, creating information asymmetry and generally undermining the integrity of the capital market.”
It further stated that the marketing campaign and invitations to “create accounts”, “pre-fund,” or “secure guaranteed allocations” amounted to market manipulation and constituted “serious violation of the Investments and Securities Act.”
The Commission directed all Registered Capital Market Operators, particularly stockbrokers and digital platform promoters, to immediately stop all promotional activities.
The SEC ordered them to “cease with immediate effect from publishing, reposting, or distributing any promotional material, flyer, or commentary relating to the acquisition or allocation of shares in the Refinery.”
It also directed operators to “remove or take down all such unauthorized marketing materials from websites, social media handles (including X, LinkedIn, Instagram, Facebook etc.), and messaging groups within twenty-four (24) hours of this notice.”
The regulator further instructed operators to desist from accepting deposits, commitments, account openings or expressions of interest from investors for the purported public offering and to “reverse and refund all funds already collected in connection with this purported offering to clients within twenty-four (24) hours of this notice.”
The Commission warned that defaulters would face sanctions as non-compliance would attract penalties under the Investments and Securities Act, 2025 and the SEC Rules and Regulations.
The SEC urged members of the public should “rely only on formal, official pronouncements issued directly by the Commission through its official channels.
It advised that all such high-pressure marketing tactics, or transfer of funds to any operator for ‘pre-IPO’ placement should be ignored as they did not receive the Commission’s approval.”