President of Dangote Industries Limited, Aliko Dangote, on Monday said the proposed initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE is designed to give ordinary Nigerians and Africans an opportunity to own a stake in the massive industrial facility.
Dangote disclosed this in Lagos while signing the IPO registration documents, describing the transaction as an “IPO for the people” aimed at democratising ownership of the refinery.
The offer comprises 4.1 billion ordinary shares at N525 each and is expected to raise just over N2 trillion, with a minimum subscription of 10 shares.
Dangote said the offer was not solely about raising funds for the refinery’s planned expansion but also about widening ownership of the facility to people who would ordinarily not have access to such an investment.
“But it is not only to fund the expansion of the refinery, of course, but it’s a bigger amount. What we are trying to do is to make sure the majority of all these my—our drivers, our cooks, our, you know, servants, our managers, everybody, they will have an opportunity to have a stake in this refinery,” Dangote said.
“So, this is why we have actually called it the IPO for the people. This is why we say that this is democratising. There is no segregation on who can own these shares. We want every human being living on the continent to be part of this action, and I’m sure they will continue to be happy now, in the future, and forever.”
The signed prospectus puts the value of the offer at about $1.6 billion, while the IPO values the refinery at about $49 billion.
The public offer is scheduled to open on September 14 and close on October 13, even as Dangote also highlighted the potential returns for investors, pointing to the possibility of dollar-denominated dividends that could help shareholders meet expenses outside Nigeria.
The IPO comes as the Dangote Group plans to double the refinery’s production capacity from 650,000 barrels per day to 1.4 million barrels per day.
Pinnacle Daily reported on September 4 that the IPO was expected to open within 10 to 12 days, following comments by Dangote while speaking with investors and analysts in Botswana.
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The refinery reached its full nameplate capacity of 650,000 barrels per day in February and had already tested production at 700,000 barrels per day, according to the earlier report.
Reflecting on the long journey to the IPO, Dangote said the refinery project was built on the confidence of lenders who provided financial backing before the company had settled on a location or obtained a licence.
He recalled that the company spent three years and eight months at Olokola before eventually moving to the Lekki Free Zone.
“Three years, eight months in Olokola, and then we spent over a year and a half before we got access to our land at Lekki Free Zone,” he said.
Dangote said the refinery was central to the group’s wider industrialisation strategy, stressing that Africa could not industrialise without reliable energy supply.
“Our Vision 2030 mantra at the Dangote Group is ‘accelerating Africa’s industrialisation’. We have learned the hard way, and we cannot industrialise if we do not have energy security.”
He said the group had shifted its mindset as it continued to invest in Nigeria and expand its operations across the continent.
“That is why there has been a shift in the mindset of the group. As we continue to invest in Nigeria as the powerhouse in Africa, we must also preach and take this gospel to other parts of the continent.”
Dangote said the refinery represented an opportunity for Nigeria and Africa to demonstrate that large-scale industrial projects could be achieved through local initiative and determination.
“As I have said repeatedly, we as Nigerians and Africans must be bold and lead the change to develop our economies and our continent. And by doing so, we provide opportunities for our people; we’ll also create prosperity.”
“Today, indeed, is a day of collective pride for all of us,” he said, adding, “This event signals that we can dream and dream big while we create prosperity for our people. Today also shows that nothing is impossible for us to achieve once we are focused and determined.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X