Dangote unveils N2.15 trillion IPO, says offer to democratise wealth creation

Aliko Dangote, President and Chief Executive Officer of Dangote Industries Ltd., says the Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals (FZE) will democratise wealth creation for ordinary Nigerians and investors globally.

Addressing the global capital market community that gathered at the trading floor of the Nigerian Exchange in Lagos on Monday, September 14, for the “Facts Behind the Offer” presentation and opening gong ceremony, Dangote described the offer as a historic moment for Nigeria’s capital market and the Dangote Group and Africa, saying it would enable ordinary Nigerians and investors globally to own shares in one of Africa’s major industrial projects.

The ceremony witnessed the Nigerian Exchange Ltd. formally opening the N2.15 trillion IPO comprising 4.1 billion new ordinary shares offered at N525 per share, with a minimum subscription of 10 shares valued at N5,250.

The subscription opened through about 55 digital channels spanning 20 banks, two mobile money operators, NGX’s Invest platform and 32 fintechs, in a push to reach 10 million investors. The IPO closes on October 13 while listing on NGX is expected in November.

What they are saying:

Dangote said the transaction was not primarily about raising funds, noting the group had already met its financing needs through a private placement that drew about $2.5 billion in demand for a $1 billion allocation, forcing roughly $1.2 billion to be returned to investors.

• “What initially belongs to a country begins, in a deeper sense, to now belong to the people. Today is such a moment; today is a historic day,” he said.
• “An asset of this magnitude should not create value for only a very few people,” he added, arguing it should benefit millions worldwide.

Aigboje Aig-Imoukhuede, Chairman of Access Holdings, pointed to early subscription activity as a sign of investor appetite.

• “You are a blessing to humanity,” he said, citing billions of naira already subscribed within an hour of the data room opening.

Dr Umar Kwairanga, Chairman of NGX Group, said the offer demonstrates the market’s capacity to support enterprise at global scale.

• “Dangote has built Africa. Now, we are going to exercise our rights and be part and parcel of this huge investment,” he said.

According to Dangote, the broad-based ownership would let investors hedge through exposure to a dollar-linked revenue business, useful for Nigerians with obligations such as school fees abroad, since dividends would be paid in dollars.

More details

Dangote said the refinery could become Africa’s largest company by the end of 2026, pointing to expansion plans covering both refining and petrochemicals.

The group is scaling petrochemical output, with plans to produce polypropylene, polyethylene and polystyrene alongside its refining operations.

Dangote also disclosed plans for a refinery in Lamu, Kenya, part of a broader push to position African industrial assets to attract global capital.

• He said the group’s expansion was part of efforts to position African businesses to attract large-scale global investment, describing the continent’s untapped potential in stark terms: “Africa is like a scratch card. Unless you scratch it, you don’t see the use of it. The opportunities are immense,” Dangote said.

He called on Nigerians and Africans to seize the opportunity, saying the refinery could be Africa’s largest company by the end of 2026.

• “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.

Dangote added that crude oil could yield thousands of products, emphasising the importance of building refining and petrochemical capacity in Africa.

The refinery has become a major supplier of aviation fuel to Europe, with its jet fuel output already sold out for August and September.

What you should know:

The IPO opening follows regulatory clearance and a prospectus that has drawn scrutiny over how much control Dangote will retain after the sale.

• Nigeria’s SEC approved the offer on September 5, registering 120.13 billion existing ordinary shares alongside the new issue, implying a valuation of about $47 billion.
• Nairametrics’ review of the prospectus shows Dangote’s beneficial ownership — held across DORCL, DIL and Greenview — will remain at roughly 84.34% after the offer, with only about 3.3% of the enlarged company available to public investors.
• PanAfrican Refinery Investment SPV, a Mauritius-based vehicle, has already committed about $400 million toward the offer under a subscription agreement signed on August 28.

Proceeds are earmarked to support plans to more than double refining capacity to 1.4 million barrels per day, with Dangote targeting EBITDA above $12 billion.

The refinery, sited in the Lekki Free Zone, has a nameplate capacity of 650,000 barrels per day, ranking it among the largest single-train refineries in the world.