•Aliko Dangote (4th left)
Dangote Petroleum Refinery has opened offer for ordinary Nigerians to have stake in Africa’s largest refinery.
At a signing ceremony in Lagos yesterday, Aliko Dangote announced an N2.2 trillion Initial Public Offering (IPO) of 4.1 billion shares, reports Daily Independent.
The company says it is targeting market traders and drivers to institutional and Sharia-compliant investors totalling 10 million.
The IPO is set to be the largest retail share offer in African history. Proceeds will fund the expansion of the refinery to 1.4 million barrels per day, positioning it as the world’s biggest single-train refinery by 2028.
The share offer is expected to open for subscription between September 14 and October 13, this year
Dangote disclosed that the minimum subscription has been set at 10 ordinary shares, representing an entry investment of N5,250 noting that the offer was strategically designed to enable broad-based participation by retail and institutional investors while deepening public ownership of one of Africa’s most transformative industrial assets.
He explained that the share offer is not just about raising money but also carries along all Nigerians with drivers, cleaners, housemaids and the likes having the opportunity to be part owner of the refinery
He added: This IPO is not only about raising capital; it is about democratising wealth creation, broadening participation in Africa’s industrial future and giving millions of investors the opportunity to own a stake in a world-class enterprise, it’s a legacy we are laying down, nobody will live forever”
Speaking, Group Managing Director of Vetiva Advisory Services Limited, the Lead Issuing House and coordinator of the transaction, Chuka Eseka, explained that the launch follows the recent approval granted by the Securities and Exchange Commission (SEC), paving the way for the offering of 4.1 billion ordinary shares at N525 per share.
The landmark public offer places a valuation of close to $50 billion on Dangote Petroleum Refinery and Petrochemicals and is expected to provide the capital required to finance the expansion of the refinery’s production capacity from 700,000 barrels per day to 1.4 million barrels per day.
Analysts say the eventual listing of the refinery on the Nigerian Exchange later this year could significantly reshape the country’s capital market landscape, potentially increasing the exchange’s total market capitalization by more than one-third.
Investor appetite for the refinery has been evident in recent months. In July, the company raised $2.5 billion through a private placement targeted at institutional investors and high-net-worth individuals, with demand exceeding the offer size by 270 per cent. Market observers believe substantial unmet demand from that exercise could flow into the public offering.
Interests in the share sale had been building long before the SEC granted formal approval. The refinery’s investment appeal continues to attract attention even beyond Nigeria’s borders.
The public offer is expected to benefit from improving investor sentiment towards Nigeria following the country’s reinstatement to Frontier Market status by FTSE Russel.
This is expected to enhance foreign portfolio inflows and strengthen international investor participation in the capital market.
Managing Director of Dangote Petroleum Refinery, David Bird explained since the commencement of production in January 2024, Dangote Refinery has rapidly emerged as a key player in the global energy market expressing excitement that the facility last June, surpassed the United States to become the largest external supplier of jet fuel to Europe, a position it maintained in July, further underscoring its growing influence in international petroleum trade.
Market experts believe the success of the Dangote Refinery IPO could establish a new benchmark for large-scale public offerings in Africa, while encouraging other major Nigerian enterprises to access long-term capital through public listings. into a limited liability company.
