Dangote opens refinery ownership to millions with N2.2trn IPO

Alhaji Aliko Dangote has declared that the N2.2 trillion Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals, FZE, is designed to spread ownership of the massive industrial project and give Nigerians and investors across the world a stake in its future.

Dangote, President and Chief Executive Officer of Dangote Industries Limited, made the disclosure yesterday in Lagos at the “Facts Behind the Offer” presentation and opening gong ceremony marking the formal commencement of the offer on the Nigerian Exchange Limited (NGX).

The IPO consists of 4.1 billion new ordinary shares at N525 per share. Investors can subscribe to a minimum of 10 shares for N5,250, while the offer is expected to close on October 13, subject to the terms of the prospectus.

For Dangote, the offer represents more than a major capital-market transaction. He described it as a historic step towards transferring part of the value of a major national industrial asset to the wider public.

“It would enable ordinary Nigerians and investors globally to own shares in one of Africa’s major industrial projects,” Dangote said.

“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.”

He explained that the public offer was driven by the need to broaden ownership rather than raise money for the group’s expansion.

“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,” he said.

“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.”

Dangote added: “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.”

He said the group had already secured enough funding for its expansion plans, explaining that it had originally targeted $2.5 billion through a $1.5 billion IPO and $1 billion private placement.

The private placement attracted applications of approximately $2.5 billion for the $1 billion offer, he said, leading to the return of about $1.2 billion to investors following allocations.

“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,” Dangote said.

He argued that investing in the refinery could also provide a means of preserving and growing wealth, particularly because much of the company’s revenue is dollar-linked.

Dangote noted that dollar dividends could be useful to Nigerians who have obligations outside the country, including school fees.

He urged Nigerians and other Africans to participate in the offer, saying the refinery had the potential to 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.

Refinery expands global footprint

Dangote described the refinery as a world-class industrial asset and Africa’s largest refinery, built to international standards and fitted with modern technology.

The facility, he said, was supplying the Nigerian market while increasingly reaching African and international customers.

He disclosed that the refinery had emerged as a major aviation-fuel supplier to Europe, with jet fuel production for August and September already sold out.

Beyond refining, Dangote said the group was expanding its petrochemical operations, including planned production of polypropylene, polyethylene and polystyrene.

The expansion, he said, would provide new opportunities for investors and strengthen industries dependent on petrochemical products.

He also revealed that the group was considering expansion beyond Nigeria, including plans to establish a refinery in Lamu, Kenya.

According to him, the broader strategy is to build African businesses capable of attracting significant international investment.

“Africa is like a scratch card. Unless you scratch it, you don’t see the use of it. The opportunities are immense,” he said.

Dangote said 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.

He also stressed that crude oil could be transformed into thousands of products, making refining and petrochemical capacity critical to Africa’s industrial development.

On aviation fuel, Dangote said global demand would remain strong as airlines continued to place aircraft orders, while the pace of new refinery development remained relatively slow.

Aig-Imoukhuede: ‘It’s a historic offer’

Aigboje Aig-Imoukhuede, Chairman of Access Holdings, described the transaction as a historic offer, pointing to the scale of the refinery and the early investor response.

“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,” he said.

“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.”

Kwairanga: IPO proves market can fund global-scale businesses

Chairman of NGX Group, Dr Umar Kwairanga, said the transaction demonstrated that Nigeria’s capital market could support businesses operating at global scale.

The offer of 4.1 billion shares at N525 each, which is expected to raise about N2.15 trillion, was, according to him, significant in scale and importance.

Kwairanga said the transaction would showcase the capital market’s ability to support enterprise and provide investors with confidence in the integrity, transparency and efficiency of the market.

He described the Dangote refinery as one of the continent’s most significant industrial investment projects and an example of what Nigerian enterprise could conceive, finance and execute.

He called for stronger capital markets capable of connecting African savings to African enterprises and financing companies that can compete globally.

“Transactions of this scale strengthen our proposition and demonstrate what our markets can achieve when capital, enterprise and ambition come together,” he said.

Kwairanga said Africans must actively participate in businesses and investments on the continent.

“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.

He commended Dangote and the refinery’s board and management for taking the company to the capital market, adding that NGX had the resources and capacity to support more large-scale transactions.

‘People’s IPO’ — Bird

David Bird, Chief Executive Officer of Dangote Refinery, said the offer was deliberately structured to encourage widespread participation.

“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,” he said.

Investors can use over 100 channels

Temi Popoola, Group Chief Executive Officer of Nigerian Exchange Group, said investors had more than 100 approved channels through which they could participate in the N2.2 trillion offer.

“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,” Popoola said.

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