The Securities and Exchange Commission (SEC) has issued a fresh warning to investors participating in the Dangote Refinery IPO, cautioning them against fraudulent platforms, social media accounts and unauthorised agents seeking to collect applications or funds. The warning comes as the highly anticipated initial public offering opened for subscription on Monday.
The regulator urged prospective investors to obtain information about the offer only through the SEC, the issuer and other officially approved channels. With increased public interest in the Dangote Refinery IPO, the SEC warned that scammers may attempt to exploit the excitement by creating fake websites, links and digital platforms designed to obtain investors’ money or personal information.
The commission also advised investors to verify that the Capital Market Operator they choose is registered and authorised to participate in the offer. Investors were specifically warned against responding to unsolicited calls, WhatsApp messages, emails and social media advertisements promising guaranteed allotments or preferential treatment.
According to the SEC, simply having a company, individual, digital platform or social media account does not mean that it has been authorised to receive IPO applications or investors’ funds. The regulator therefore advised investors to follow the approved subscription process and timetable and avoid transferring money to anyone outside the officially designated channels.
The SEC further encouraged prospective investors to carefully read the approved prospectus and understand the terms, conditions and risks associated with the investment before subscribing. Investors who need assistance can seek guidance from SEC-registered stockbrokers, banks and registered investment advisers, helping them navigate the Dangote Refinery IPO safely while avoiding potential scams.
source: The cable
