Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, says the Initial Public Offering of Dangote Petroleum Refinery and Petrochemicals FZE will democratise wealth creation by allowing more Nigerians and investors globally to own a stake in the major industrial project.
Dangote spoke on Monday in Lagos at the “Facts Behind the Offer” presentation and opening gong ceremony for the refinery’s IPO, which formally opened on the Nigerian Exchange Limited.
The N2.15tn offer comprises 4.1 billion new ordinary shares priced 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 of the prospectus.
Describing the IPO as a historic moment for Nigeria’s capital market, the Dangote Group and Africa, Dangote said the offer would broaden ownership of one of the continent’s largest 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,” he said.
He said the decision to offer shares to the public was driven by the desire to allow more people to participate in and benefit from the wealth generated 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 said.
The business mogul said the IPO was not primarily aimed at raising funds, noting that the group already had sufficient resources for its expansion plans.
He said the group initially planned to raise $2.5bn through a combination of private placement and the IPO, with $1.5bn expected from the IPO and $1bn from private placement.
According to him, the private placement attracted applications worth about $2.5bn for the $1bn offer, resulting in about $1.2bn being returned to investors after 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,” he said.
Dangote said broad-based ownership would give investors an opportunity to preserve and grow their wealth through exposure to a business whose revenues were largely dollar-linked.
He added that this could particularly benefit Nigerians with financial obligations abroad, including school fees, as investors would receive dividends in dollars.
Dangote urged Nigerians and Africans to take advantage of the offer, 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.
He described the refinery as a world-class industrial facility built to international standards and equipped with modern technology.
According to him, the refinery supplies Nigeria’s domestic market while also serving African and international markets.
Dangote said the facility had become a major supplier of aviation fuel to Europe, adding that its jet fuel production had been sold out for August and September.
He said the group was also expanding its petrochemical operations, with plans to produce polypropylene, polyethylene and polystyrene.
The expansion, he said, would create additional opportunities for investors while supporting industries that rely on petrochemical products.
Dangote also disclosed that the group was exploring opportunities outside Nigeria, including plans to establish a refinery in Lamu, Kenya.
He said the expansion was part of efforts to position African businesses to attract large-scale global investment.
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“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 IPO would open the market to Africans and non-Africans seeking to participate in the growth of the continent’s industrial sector.
“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 the importance of refining crude oil locally, noting that crude could be transformed into thousands of products.
Dangote said the growing number of aircraft being ordered globally would sustain demand for aviation fuel, particularly as new refineries were not being developed at the same pace.
The refinery, located in the Lekki Free Zone, has a nameplate capacity of 650,000 barrels per day and is one of the largest single-train refineries in the world.
Speaking at the ceremony, Aigboje Aig-Imoukhuede, Chairman of Access Holdings, described the IPO as a historic offer and commended the level of investor
