President of Dangote Industries Limited, Aliko Dangote, has signed the registration documents for the proposed initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE, saying the share sale will give ordinary Nigerians and other Africans an opportunity to own a stake in the refinery.
Dangote made the disclosure on Monday at the signing ceremony in Lagos, describing the proposed offer as an “IPO for the people” aimed at broadening ownership of the multi-billion-dollar facility.
The offer comprises 4.1 billion ordinary shares priced at N525 each and is expected to generate slightly above N2tn. The minimum subscription has been fixed at 10 shares.
Explaining the motivation behind the offer, Dangote said the exercise was not primarily about financing the refinery’s expansion, but also about allowing people from different walks of life to become shareholders.
“But it is not only to fund the expansion of the refinery, of course, it’s a bigger amount. What we are trying to do is to make sure majority of all these my—our drivers, our cooks, our, you know, servants, our managers, everybody, they will have an opportunity to have a stake in this refinery,” Dangote said.
He said the initiative was intended to extend ownership beyond a limited group of investors and make it accessible to people across the continent.
“So, this is why we have actually called it the IPO for the people. This is why we say that this is democratizing,” he said.
“There is no segregation on who can own these shares. We want every human being living on the continent to be part of this action, and I’m sure they will continue to be happy now, future, and forever.”
‘Waiting for my dollar dividend’
Dangote also highlighted the potential benefits investors could derive from owning shares in the refinery, particularly the possibility of receiving dividends denominated in dollars.
He suggested that such returns could help shareholders meet financial obligations outside Nigeria.
“When, uh, they will end up having to say that yes, I’m waiting for that check for my dollar, uh, dividend to send for the school fees of my daughter in UK or anywhere in the part of the world,” he said.
The signed prospectus values the offer at approximately $1.6bn, while the IPO places the refinery’s valuation at about $49bn.
The public offer is scheduled to commence on September 14 and run until October 13.
From bankers’ trust to refinery IPO
Reflecting on the refinery’s development, Dangote recalled that the project received financial backing from bankers before the company had finalised its location or obtained a refinery licence.
“…bankers without them even seeing which site we were going to use. Without seeing the license, we didn’t even have a license of the refinery. But the shared trust between us and our bankers made them to put money on the table without asking too many questions. We thank you for your trust,” he said.
He said finding a suitable location for the project proved challenging, with the company spending years searching for the appropriate site.
“Even though we had very false starts, several hurdles, in fact, on the land itself, we struggle for five years trying to find which land we’re going to use,” he said.
According to Dangote, the company spent three years and eight months at Olokola before relocating the project to the Lekki Free Zone.
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“Three years, eight months in Olokola, and then we spent over a year and a half before we got access to our land at Lekki Free Zone,” he said.
He also recalled difficulties encountered when the company attempted to gain access to the Lekki site, including resistance from members of the host community.
We tried to enter, but I think the first fight where Mr. Dishi lost his life at the Lekki Free Zone because, you know, there was fight with the community and, you know, not on our own side. Our side is right inside, but the community were actually resisting, and that actually made them, you know, to understand what we wanted to do, and later on I think they allowed us in.”
Dangote acknowledged the roles played by former Lagos governors Babatunde Fashola and Akinwunmi Ambode, as well as the incumbent governor, Babajide Sanwo-Olu, in supporting the project.
“So, list of names, and the former governor of Lagos, Fashola, and also Ambode, they did extremely very well, and then later on, Sanwo-Olu, they did even better.”
‘Nothing is impossible’
The businessman expressed gratitude for reaching the stage where the refinery is being opened to public investment.
“So today, I am indeed grateful to Almighty Allah for having spared our lives to witness this day.”
He called on Nigerians and other Africans to take greater responsibility for developing their economies and creating opportunities for their people.
“As I have said repeatedly, we as Nigerians and Africans must be bold and lead the change to develop our economies and our continent. And by doing so, we provide opportunities for our people, we’ll also create prosperity.”
“Only then will the others take us very seriously. Only then we will be in the position to negotiate and walk away with terms that we desire, not those terms that are given to us.”
Dangote described the refinery as an important project not only for Nigeria but for the wider African continent.
“The refinery means so much to our continent, from the man working in Simandou mines to the woman in the rich agricultural fields in Amhara, to the fisherman in Walvis Bay, and to the custodians of our ancient history in the desert at the northern tip of our continent.”
“Today, indeed, is a day of collective pride for all of us.”
He added: “This event signals that we can dream and dream big while we create prosperity for our people. Today also shows that nothing is impossible for us to achieve once we are focused and determined.”
Energy security key to industrialisation
Dangote said the refinery was central to the Dangote Group’s broader objective of promoting industrialisation across Africa.
“Our Vision 2030 mantra at the Dangote Group is ‘accelerating Africa’s industrialization.’ We have learned the hard way and we cannot industrialize if we do not have energy security.”
He said the group had adopted a broader approach to its investments, with Nigeria remaining a major focus while the company also seeks to expand its industrial activities across the continent.
That is why there has been a shift in the mindset of the group. As we continue to invest in Nigeria as the powerhouse in Africa, we must also preach and take this gospel to other parts of the continent.”
He pointed to expansion plans in Ethiopia, Kenya, Tanzania and Namibia, saying the group’s activities had encouraged other African entrepreneurs to pursue industrial development.
“Through these plans, we have also inspired many other African entrepreneurs to join us in this journey to industrialize our continent.”
The refinery’s public offer is expected to open to investors on September 14.
However, an independent check by our correspondent on Monday afternoon on the Nigerian Exchange, Bamboo and other investment platforms indicated that the refinery had not yet been officially listed or commenced trading.