Key points
- The IPO comprises 4.1 billion new shares at N525 each, with a minimum subscription of 10 shares, and closes on Oct. 13.
- Dangote said the group already met its funding needs through a $1 billion private placement that drew about $2.5 billion in applications.
- The group is expanding into polypropylene, polyethylene and polystyrene and plans a new refinery in Lamu, Kenya.
Aliko Dangote says the initial public offering of Dangote Petroleum Refinery and Petrochemicals will democratize wealth creation by giving ordinary Nigerians and investors around the world a chance to own part of one of Africa’s largest industrial projects.
The president and chief executive of Dangote Industries Limited spoke at the “Facts Behind the Offer” presentation and opening gong ceremony in Lagos, where the Nigerian Exchange Limited formally opened the offer.
The IPO comprises 4.1 billion new ordinary shares at N525 per share, which works out to roughly N2.15 trillion. The minimum subscription is 10 shares, or N5,250, and the offer is scheduled to close on Oct. 13.
According to Dangote, an asset of this magnitude should create value for millions of people rather than a few. He described the listing as a historic moment for Nigeria’s capital market, the Dangote Group and the continent.
Not about raising money
Notably, Dangote said the IPO was not primarily about funding. The group had planned to raise $2.5 billion through a combination of a $1 billion private placement and a $1.5 billion IPO.
However, the private placement alone attracted about $2.5 billion in applications, forcing the company to return roughly $1.2 billion to investors after allocations.
As a result, he said, the public offer is about making sure ordinary investors share in the benefits. In addition, he argued that the refinery’s largely dollar-linked revenues would help Nigerians preserve and grow their wealth, since dividends would be paid in dollars. That could particularly help those with obligations abroad, such as school fees.
Dangote said the refinery, the largest in Africa, now supplies the domestic market as well as other African and international markets.
Moreover, it has become a major supplier of jet fuel to Europe, with production sold out for August and September.
Petrochemicals and Kenya next
Beyond fuels, the group is expanding its petrochemical operations to produce polypropylene, polyethylene and polystyrene.
Furthermore, Dangote disclosed plans to build a refinery in Lamu, Kenya, as part of a push to position African businesses to attract large-scale global investment.
He urged Nigerians and Africans to seize the opportunity, predicting the refinery could become Africa’s largest company by the end of 2026. “You are buying a future,” he said.
Meanwhile, NGX Group Chairman Umar Kwairanga said the offer demonstrated the capacity of Nigeria’s capital market to support businesses at a global scale.
Access Holdings Chairman Aigboje Aig-Imoukhuede called the offer historic, noting that billions of naira had been subscribed by thousands of investors within an hour of the data room opening.
Refinery CEO David Bird described the transaction as “the people’s IPO,” while NGX Group Chief Executive Temi Popoola said investors can subscribe through more than 100 approved channels, including banks, stockbrokers, fintechs, mobile operators and POS agents.