Alhaji Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, has said the Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals, FZE, will broaden wealth creation by giving Nigerians and investors around the world the opportunity to own shares in one of Africa’s major industrial projects.
Dangote made the statement yesterday at the “Facts Behind the Offer” presentation and opening gong ceremony for the refinery’s IPO in Lagos, where the Nigerian Exchange Limited (NGX) formally opened the N2.2 trillion offer.
The IPO consists of 4.1 billion new ordinary shares offered at N525 per share, with a minimum subscription of 10 shares valued at N5,250. The offer is scheduled to close on October 13, subject to the terms contained in the prospectus.
Describing the offer as a landmark moment for Nigeria’s capital market, the Dangote Group and Africa, Dangote said: “It would enable ordinary Nigerians and investors globally to own shares in one of Africa’s major industrial projects.
“What initially belongs to a country, begins in a deeper sense, now belongs to the people. Today is such a moment; today is a historic day
“The IPO is not simply about listing a company but creating a new possibility for Nigeria and Africa by broadening ownership of a major industrial asset.
“The decision to offer shares to the public was driven by the desire to allow more people participate in and benefit from the prosperity created by the refinery.
An asset of this magnitude should not create value for only a very few people. It should create value for millions of people, not only Nigerians, but all over the world.”
Dangote explained that the IPO was not mainly intended to raise funds because the group already had adequate resources to finance its expansion plans.
He said the group had initially planned to raise $2.5 billion through the IPO and private placement, with $1.5 billion expected from the IPO and $1 billion from the private placement.
According to him, the private placement generated strong interest, receiving applications of about $2.5 billion for the $1 billion offer.
He said the level of demand resulted in about $1.2 billion being returned to investors after allocations had been completed.
“We already met all our demands with the private placement. Coming back now to the IPO is actually about making sure that the public can get part of these benefits,” he said.
Dangote said wider ownership would give investors an opportunity to preserve and grow their wealth by investing in a business with largely dollar-linked revenues.
He noted that this could be particularly useful to Nigerians with financial commitments outside the country, including school fees, as investors would receive dividends in dollars.
He urged Nigerians and Africans to take advantage of the opportunity, saying the refinery could become Africa’s largest company by the end of 2026.
“You are buying a future. It is a company that is not only about revenue, but profitability,” he said.
Dangote described the refinery as a world-class industrial facility and Africa’s largest refinery, built to international standards and equipped with modern technology.
He said the facility was supplying petroleum products to Nigeria’s domestic market while also serving customers across Africa and other international markets.
According to him, the refinery had become a major supplier of aviation fuel to Europe, with its jet fuel production for August and September already sold out.
Dangote also disclosed that the group was expanding its petrochemical operations, with plans to produce polypropylene, polyethylene and polystyrene.
He said the expansion would create additional investment opportunities while supporting industries that rely on petrochemical products.
The businessman further disclosed that the group was exploring expansion opportunities outside Nigeria, including plans to establish a refinery in Lamu, Kenya.
He said the group’s international expansion was part of a broader effort to position African businesses to attract substantial global investment.
“Africa is like a scratch card. Unless you scratch it, you don’t see the use of it. The opportunities are immense,” Dangote said.
He again called on Nigerians and Africans to take advantage of the investment opportunity, saying the refinery could become Africa’s largest company by the end of 2026.
“What we are trying to do is to open up the market and make sure that when we open up the market, Africans and non-Africans will join us to have what you call the new Africa rising,” he said.
Dangote also stressed the importance of expanding refining and petrochemical capacity across Africa, noting that crude oil could be transformed into thousands of different products.
He said the increasing number of aircraft being ordered by airlines globally would sustain demand for aviation fuel, particularly because new refineries were not being developed at the same pace.
‘It’s a historic offer’ — Aig-Imoukhuede
Commenting on the offer, Aigboje Aig-Imoukhuede, Chairman of Access Holdings, described the IPO as a historic transaction.
He said: “The Dangote Refinery has a nameplate capacity of 650,000 barrels per day and is one of the largest single-train refineries in the world.
With this particular, sterling, historic offer and what I have seen in the data room, where already billions of Naira have been subscribed by thousands of investors within minutes or under an hour, you are a blessing to humanity.”
IPO demonstrates capacity of capital market — NGX Chairman
Also speaking, Dr Umar Kwairanga, Chairman of NGX Group, said the IPO had demonstrated the ability of Nigeria’s capital market to support businesses operating on a global scale.
Kwairanga said the offer of 4.1 billion ordinary shares at N525 per share, expected to raise about N2.15 trillion, was significant in both scale and importance.
According to him, the transaction provided an opportunity to demonstrate the capacity of the capital market to support businesses while giving investors confidence in the integrity, transparency and efficiency of the market.
He described Dangote Petroleum Refinery as one of the continent’s most significant industrial investment projects and an example of what Nigerian enterprise could conceive, finance and execute.
Kwairanga said stronger and more effective capital markets were needed to connect African savings with African enterprises and provide funding for businesses capable of competing internationally.
“Transactions of this scale strengthen our proposition and demonstrate what our markets can achieve when capital, enterprise and ambition come together,” he said.
The NGX chairman said Africans must actively participate in businesses and investment opportunities across the continent if Africa was to achieve greater development.
“Dangote has built Africa. Now, we are going to exercise our rights and be part and parcel of this huge investment as part owners of Dangote Refinery after this offer,” he said.
Kwairanga commended Dangote, alongside the board and management of Dangote Petroleum Refinery, for taking the company to the capital market.
He said the NGX had the capacity and resources to support additional large-scale transactions and bring more major businesses into the capital market.
Meanwhile, David Bird, Chief Executive Officer of Dangote Refinery, said the IPO was structured to encourage broad participation from investors.
He said: “The intent is very much the people’s IPO, drive wide participation, enable Nigerians and the Nigerian diaspora, and Africans more broadly, the opportunity to participate in this wealth creation that comes from such an iconic industrial asset, like the Dangote refinery.”
Over 100 approved channels for Dangote IPO — NGX boss
Investors interested in purchasing shares in Dangote Petroleum Refinery can access the N2.2 trillion IPO through more than 100 approved channels, Temi Popoola, Group Chief Executive Officer of Nigerian Exchange Group, said yesterday.
He said: “NGX, other regulators, market operators have made it possible for banks, stockbrokers, fintech companies, mobile operators, and POS operators to give investors multiple channels to participate in the landmark offering.”
