Key Points
- Dangote Refinery offers 4.1bn shares at N525 each.
- Company targets about 10 million retail investors.
- Proceeds will support expansion from 700,000 to 1.4m barrels per day.
Main Story
Dangote Petroleum Refinery and Petrochemicals FZE on Monday unveiled a N2.15 trillion Initial Public Offer (IPO), seeking fresh capital for expansion while opening ownership of the refinery to a wider pool of investors.
The offer consists of 4.1 billion ordinary shares priced at N525 each, with investors able to subscribe for a minimum of 10 shares at N5,250.
Chief Executive of the company, Alhaji Aliko Dangote, said the offer was intended to give Nigerians and other Africans an opportunity to own a stake in the 700,000-barrel-per-day refinery.
“This is the IPO for the people. There is no segregation on who can own the shares,” Dangote said.
He said the company planned to double the refinery’s capacity to 1.4 million barrels per day as part of its expansion programme.
According to him, the additional capacity would increase production and improve the refinery’s ability to supply both domestic and international markets.
Dangote said the IPO was the refinery’s first public offer since its inauguration in 2023 and would provide more people with an opportunity to participate in its growth.
The company said the offer would also broaden its shareholder base as it raises capital for the planned expansion.
The Group Managing Director of Vetiva Capital Management Ltd., Mr Chuka Eseka, said the transaction had been structured to encourage transparency, accountability and wider participation.
He said retail investors could subscribe electronically through bank applications, internet platforms and stockbrokers, while institutional investors could use electronic channels or submit application forms through receiving agents.
FirstCap Managing Director, Mr Ukandu Ukandu, said the offer was targeting about 10 million retail investors, a figure that would be significantly higher than the current Nigerian capital market record of about 181,000 retail participants in a single transaction.
The Chief Executive Officer of Dangote Petroleum and Petrochemicals, Mr David Bird, said the refinery’s location in the Lekki Free Zone positioned it to serve Nigeria, West Africa and international markets.
“This is not just a refinery or petrochemical complex. This is truly a pan-African energy platform,” Bird said.
Oladele Sotubo, Chief Executive Officer of Stanbic IBTC Capital, said the offer had been structured to allow ordinary Nigerians to acquire shares in the refinery.
The Issues
The IPO combines two objectives: raising capital for the refinery’s planned capacity expansion and widening ownership beyond existing shareholders.
The offer also places significant emphasis on retail participation, with the issuing houses targeting about 10 million individual investors. Eligible retail investors may receive up to two additional shares under the incentive structure, subject to the applicable conditions.
What’s Being Said
“This is the IPO for the people. There is no segregation on who can own the shares,” Dangote said.
“This is not just a refinery or petrochemical complex. This is truly a pan-African energy platform,” Bird said.
Eseka said the transaction structure was designed to promote “transparency, accountability and broad participation.”
What’s Next
The IPO is scheduled to open on Sept. 14 and close on Oct. 13, subject to applicable regulatory approvals and the conditions contained in the offer documents.
Vetiva Advisory Services Ltd. is the Lead Issuing House and Lead Adviser, while Stanbic IBTC Capital and FirstCap are Joint Managers.
The company plans to list the shares on the Main Board of the Nigerian Exchange Group.
Bottom Line
Dangote Refinery is seeking N2.15 trillion through its first public offer to fund expansion and bring a much broader group of investors into the company. The plan includes doubling refining capacity to 1.4 million barrels per day and targeting about 10 million retail investors.
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