LAGOS: Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, has described the Dangote Refinery IPO as a landmark opportunity that will allow Nigerians and investors around the world to own shares in one of Africa’s biggest industrial projects.
Dangote made the statement in Lagos on Monday during the “Facts Behind the Offer” presentation and opening gong ceremony for the refinery’s Initial Public Offering on the Nigerian Exchange Limited (NGX).
The N2.2 trillion offer involves 4.1 billion new ordinary shares priced at N525 each, with investors able to subscribe for a minimum of 10 shares, valued at N5,250. The offer is scheduled to close on October 13, subject to the terms contained in the prospectus.
Dangote said the decision to take the refinery to the public market was driven largely by the desire to give more people the opportunity to participate in the wealth generated by the massive industrial project.
According to him, an asset of the refinery’s scale should not benefit only a small group of investors but should create opportunities for millions of people in Nigeria, Africa and beyond.
He described the IPO as more than a conventional share offering, saying it represents a new phase in which Nigerians and other investors can become part owners of a major industrial asset.
Dangote explained that raising fresh capital was not the main reason for the public offer because the group already had sufficient resources to finance its expansion plans.
He disclosed that the group had initially planned to raise $2.5 billion through a combination of private placement and the IPO, with $1.5 billion earmarked from the public offer and $1 billion from private placement.
However, the private placement attracted applications of about $2.5 billion for the $1 billion allocation. Following the allocation, about $1.2 billion was returned to investors because demand significantly exceeded the amount available.
Dangote said the strong response to the private placement reinforced the decision to use the IPO to broaden public participation.
He said the refinery’s public offering was intended to ensure that ordinary Nigerians could also benefit from the opportunities created by the business.
Dangote said wider ownership of the refinery would give investors an opportunity to preserve and grow their wealth through exposure to a company whose revenues are largely linked to the United States dollar.
He noted that this could be particularly useful to Nigerians with financial obligations outside the country, including those paying school fees abroad, as investors would receive dividends in dollars.
He urged Nigerians and Africans to take advantage of the offer, expressing confidence that the refinery could become Africa’s largest company by the end of 2026.
Beyond refining petroleum products, Dangote said the company was expanding its petrochemical operations and planned to produce products including polypropylene, polyethylene and polystyrene.
He said the expansion would create additional investment opportunities while supporting industries that rely on petrochemical products.
The Dangote Refinery, according to him, is already supplying Nigeria’s domestic market while serving customers in other African and international markets.
He also disclosed that the refinery had become a major supplier of aviation fuel to Europe, with its jet fuel production reportedly sold out for August and September.
The business mogul also disclosed that the Dangote Group was exploring opportunities outside Nigeria, including plans to establish a refinery in Lamu, Kenya.
He said the expansion was part of a broader strategy to position African businesses to attract large-scale international investment.
Dangote maintained that Africa has enormous economic opportunities that can be unlocked through investment, industrialisation and stronger local businesses.
Chairman of Access Holdings, Aigboje Aig-Imoukhuede, described the offer as historic, noting that the Dangote Refinery has a nameplate capacity of 650,000 barrels per day and is among the world’s largest single-train refineries.
He also pointed to the strong early response from investors, saying billions of naira had already been subscribed by thousands of investors within a short period.
Chairman of NGX Group, Umar Kwairanga, said the IPO demonstrated the ability of Nigeria’s capital market to support businesses operating at a global scale.
He said the offer of 4.1 billion ordinary shares at N525 per share, with a value of about N2.15 trillion, was significant for both the Nigerian capital market and investors.
Kwairanga described the refinery as one of Africa’s most significant industrial investment projects and said transactions of such magnitude could strengthen the connection between African savings and African businesses.
Chief Executive Officer of NGX Group, Temi Popoola, said investors interested in the Dangote Refinery IPO could access the offer through more than 100 approved channels.
He said banks, stockbrokers, fintech companies, mobile operators and POS operators had been enabled to provide multiple avenues for investors to participate in the landmark offering.
The CEO of Dangote Refinery, David Bird, said the intention was to make the offering a people’s IPO” by encouraging participation from Nigerians, members of the Nigerian diaspora and Africans more broadly.
The public offer therefore marks a major step in Dangote Refinery’s transition into a more widely owned enterprise and further deepens the role of Nigeria’s capital market in financing large-scale African businesses.
