Aliko Dangote has disclosed that Dangote Refinery attracted nearly $2 billion in investor requests for its planned private placement ahead of its proposed IPO, as the company intensifies preparations for its market debut.
Dangote made the disclosure on Wednesday during a visit by Femi Otedola and top executives of First HoldCo to the refinery and fertiliser plants located in the Lekki Free Trade Zone in Lagos.
He stated that investor interest in the refinery has remained exceptionally strong, with demand already exceeding the proposed private placement size.
According to him, the company is working towards entering the market by September, as institutional and private investors continue to express interest in acquiring stakes in the multibillion-dollar refinery project.
What Dangote is saying
Dangote said the refinery’s planned private placement has already attracted requests worth billions of dollars, reflecting growing investor confidence in the project and its long-term potential.
He explained that advisers are still evaluating the appropriate valuation and pricing structure ahead of the proposed offering.
- “The IPO that we have right now, there is quite a lot of demand in terms of people disturbing us, pushing us that ‘look, we want to buy’. And that is the reason why we are trying to make sure that by September, we will be out there in the market,” Dangote said.
- “We have a lot of demands in billions of dollars.”
- “The advisers are still evaluating to see how much we are going to go to the market with,” he added while speaking on the proposed listing price.
- “…when we say we’re going to do private placement, already, we have people who have actually requested to buy, and we have an amount over almost $2 billion. We are not selling up to that but we will see what we can allocate to them.”
Dangote also noted that the company intends to structure the eventual public offering in a way that allows wider participation by ordinary Nigerians and smaller retail investors.
More Insights
The billionaire industrialist described the refinery as one of the most transformative industrial projects on the African continent, with the potential to significantly reshape regional energy and manufacturing capacity.
He stated that the facility is expected to account for roughly 10% of the refining capacity of the United States.
- Dangote said the refinery would become “the largest refinery ever on the earth” and one of the biggest industrial assets globally.
- According to him, the refinery is also projected to generate one of the largest corporate turnovers in Africa.
- He compared the company’s long-term vision to global corporations such as Amazon and Apple, saying the goal is to create substantial value for investors over time.
- Dangote further emphasised the importance of partnerships between the Dangote Group and Nigerian banks in supporting industrial expansion and economic growth.
He added that the company remains committed to building sustainable businesses capable of creating wealth across different segments of society.
The planned private placement and eventual IPO are expected to deepen participation in one of Africa’s largest industrial projects while potentially expanding Nigeria’s capital market activity.
What you should know
In April, Dangote announced plans to list about 10% of his oil refining company on multiple African stock exchanges as part of efforts to raise funding for the next phase of expansion across his industrial empire
The Dangote Petroleum Refinery, located in the Lekki Free Trade Zone in Lagos, is widely regarded as one of Africa’s largest industrial investments.
The refinery has a refining capacity of 650,000 barrels per day and is expected to play a major role in transforming Nigeria’s downstream petroleum sector.
