Aliko Dangote has said the planned Initial Public Offering (IPO) of Dangote Refinery is designed to give ordinary Nigerians and other Africans an opportunity to own shares in one of the continent’s major industrial projects.
Dangote, President of Dangote Industries Limited, said the offering was intended to broaden participation in the capital market by bringing people who have traditionally had limited access to major investment opportunities into the ownership of the refinery.
He disclosed this in an exclusive interview with Arise TV.
According to Dangote, the company is targeting about 10 million shareholders, including small business owners and low-income earners, so they can participate in and benefit from the refinery’s future growth.
“We want to democratise the capital market,” Dangote said.
He explained that the IPO was not simply designed for investors to purchase shares and sell them for short-term gains, but to give families and ordinary Nigerians an opportunity to build wealth over the long term.
Dangote said the number of potential shareholders could eventually become so large that the company might need to hold its Annual General Meeting in a stadium to accommodate them.
He also said the company would encourage participation from low-income earners, stressing that ownership of the refinery should not be limited to wealthy investors.
For Africans outside Nigeria who want to participate, Dangote said the shares could be purchased digitally through platforms, including POS channels. He added that the refinery would cover the transaction commission so investors would not have to pay for the service.
He also identified PAPS, a payment platform developed by Afreximbank, as another avenue through which investors across Africa could participate in the offer.
Dangote explained that regulatory restrictions had previously prevented the company from actively promoting the offer before its launch. However, investors would now be able to review the offer and subscribe during the subscription period.
He stressed that money raised through the IPO would be invested in the company rather than paid into his personal account.
According to him, investors would instead gain exposure to the future growth of the refinery and its planned expansion.
Dangote said the refinery is expected to increase its capacity to 1.4 million barrels per day while expanding its petrochemical operations.
He said the facility would eventually manufacture petrochemical products, including materials used in plastics and linear alkylbenzene, which is an important ingredient in detergent production.
The businessman also said the refinery’s revenues were largely dollarised, arguing that this could offer shareholders some protection against the effects of naira depreciation.
He added that investors would have the option of receiving dividends in either naira or dollars.
Dangote expressed confidence in the refinery’s future earnings, saying investors should evaluate its potential under normal operating conditions rather than based on disruptions linked to the conflict in the Middle East.
He explained that January and February were affected by repairs and other activities at the facility, meaning the refinery did not operate at full capacity during that period.
With the facility now operating, Dangote said its improved performance should be reflected in the company’s nine-month results.
He further projected that the company could become Africa’s largest company within three years.
Dangote also said strong demand for the IPO could result in more shares being allocated to investors, potentially increasing the allocation from about 1.6 billion shares to two billion shares, representing an increase of about 30 per cent.
He said the central objective of the offering was to broaden ownership and enable ordinary Nigerians and Africans to hold a stake in the value being created by a major African industrial enterprise.
Source: Arise TV
