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Aliko Dangote, Chief Executive Officer of Dangote Group, has said investors can subscribe to the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE with a minimum of 10 ordinary shares, worth N5,250.
Dangote disclosed this on Monday during the signing ceremony for the refinery’s IPO at Eko Hotel and Suites, Victoria Island, Lagos.
The proposed offer comprises 4.1 billion ordinary shares at an offer price of N525 per share, with the company targeting N2.15 trillion from the IPO to support the expansion of the refinery.
What Dangote is saying
Dangote said the planned fundraising was not only about securing capital for the refinery’s expansion, but also about giving more people an opportunity to participate in its ownership.
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- “In this IPO, we intend to raise just a bit more than 2 trillion Naira, which I’m sure is too small, at an offer price of 525 Naira with a minimum subscription of only 10 shares (N5,250) to fund our expansion of the refinery,” he said.
He explained that the broader objective was to give everybody an opportunity to become shareholders, no matter who they are.
- “But really, it’s not only to fund the expansion of the refinery, because it’s a bigger amount. What we are trying to do is to make sure majority of all these 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 pricing was not simply about maximising the amount that could be raised, but about encouraging people to participate and build future savings.
Dangote described the proposed offering as “the IPO for the People,” stressing that ownership would not be restricted to a particular category of investors.
- “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,” he said.
Get up to speed
Nairametrics has followed the Dangote Refinery’s IPO preparations as the company moved from raising private capital to securing regulatory approval for the public offering.
- In July, Dangote Refinery raised $2.5 billion through a private placement, strengthening its financing position ahead of the planned IPO and the next phase of its expansion.
- In August, the refinery secured a $1 billion underwriting programme, comprising a completed and funded $600 million private placement and a further $400 million underwriting commitment to support the planned IPO.
- On September 4, Nairametrics reported that the refinery planned to price its IPO shares at N525 each, with the proposed 4.1 billion-share offer potentially raising about $1.5 billion. The offer was also expected to include a 15% greenshoe option.
One day later, on September 5, the Securities and Exchange Commission approved the IPO, clearing the way for the proposed offer of 4.1 billion shares at N525 each, which could raise about N2.15 trillion if fully subscribed.
What you should know
Dangote Refinery has become a major contributor to Nigeria’s domestic petrol supply while also expanding its presence in regional African markets.
Nairametrics reported in May that the refinery supplied 41.5 million litres of petrol per day, up from 40.7 million litres in April, while operating at an average 101.25% capacity utilisation.
The refinery has also expanded its export activities. Nairametrics reported that it exported 456,000 tonnes of refined petroleum products through 12 cargoes to African markets, including Côte d’Ivoire, Cameroon, Tanzania, Ghana and Togo.
