The Securities and Exchange Commission has cautioned investors participating in the Dangote Refinery initial public offering against falling victim to fraudulent investment platforms and unauthorised agents.
The warning came on Monday as the offer officially opened for subscription, with the regulator directing prospective investors to rely only on approved receiving agents and authorised channels when submitting applications or making payments.
The SEC also advised investors to obtain information about the offer through verified sources.
“Obtain information about the IPO only from the SEC official channels, Issuer’s official channels, and other official channels established and approved for the IPO,” the SEC said.
It further urged investors to confirm the legitimacy of websites, digital platforms and links before sharing personal details or financial information.
“Verify that their chosen registered Capital Market Operator’s channels/platforms for the offer are duly authorised and approved,” the commission said.
The regulator warned investors against unsolicited approaches from individuals or platforms promising guaranteed or preferential allotments.
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“Avoid responding to unsolicited calls, WhatsApp messages, social media advertisements, emails or other channels/platforms that offer or guarantee allotments or preferential allocation.”
Investors were also advised to adhere strictly to the approved subscription procedure and IPO timetable and not send money to persons claiming to collect applications through unauthorised channels.
“The existence of an individual, company, digital platform or social media account does not, by itself, constitute approval or authorisation to receive applications or funds from investors in respect of the Offer,” the SEC said.
It asked prospective investors to study the approved prospectus carefully and understand the conditions and potential risks before subscribing.
“Carefully read the approved Prospectus and understand the terms, conditions and risks associated with the investment before making any subscription.”
The commission said investors seeking further clarification or assistance should consult SEC-registered stockbrokers, banks or registered investment advisers.