Key Points
- Aliko Dangote and financial advisers signed the refinery’s IPO documents in Lagos on Monday.
- The proposed offer involves 4.1 billion shares at ₦525 each.
- Dangote says the IPO will allow ordinary Nigerians, including workers, drivers and cooks, to own stakes in the refinery.
Main Story
President of Dangote Industries Limited, Aliko Dangote, and financial advisers to Dangote Petroleum Refinery and Petrochemicals FZE have signed the registration documents for the refinery’s proposed initial public offering (IPO).
The signing ceremony took place in Lagos on Monday, marking a major step towards the planned public offer and listing of the refinery on the Nigerian Exchange.
The transaction is expected to become Africa’s largest IPO if fully subscribed, with the company offering 4.1 billion ordinary shares at ₦525 per share. The offer could raise about ₦2.15 trillion, with the proceeds earmarked primarily for the refinery’s expansion programme.
Speaking at the ceremony, Dangote said the public offer was intended to broaden ownership of the refinery beyond major investors and give ordinary Nigerians an opportunity to participate.
He specifically mentioned workers and other lower-income earners, saying the objective was to make ownership accessible to drivers, cooks and other employees.
The signing was attended by members of the financial and business community, including Zenith Bank Chairman Jim Ovia and Heirs Holdings Chairman Tony Elumelu, alongside advisers and other stakeholders involved in the transaction.
The proposed IPO follows approval of the offer by the Securities and Exchange Commission and comes ahead of the subscription period scheduled to begin on September 14.
The refinery, located in the Lekki Free Zone, has an operational capacity of about 700,000 barrels per day. Dangote plans to increase this to 1.4 million barrels per day as part of its expansion programme.
The IPO will therefore give investors an opportunity to acquire an interest in one of Nigeria’s largest industrial projects, while providing the refinery with additional capital to fund its planned expansion.
The Issues
The signing moves the refinery’s proposed public listing from the planning stage towards implementation and places the transaction before the Nigerian capital market.
For the refinery, the offer is also a mechanism for raising capital for expansion while broadening its ownership base. For the capital market, the size of the transaction will make investor demand and participation important factors as the offer approaches its opening date.
What’s Being Said
“Our drivers, cooks, servants, and everybody have the opportunity of having stakes in the refinery,” Dangote said at the signing ceremony.
“This is the biggest IPO ever in the history of Africa,” Dangote said.
What’s Next
The IPO is scheduled to open for subscription on September 14, with the offer expected to run until October 13.
Subject to the required approvals and completion of the offer process, the refinery is expected to proceed with its proposed listing on the Nigerian Exchange.
Bottom Line
Dangote has formally signed the documents for the refinery’s proposed IPO, taking the planned ₦2.15 trillion share sale a major step closer to the Nigerian capital market. The transaction is also being positioned as an opportunity for ordinary Nigerians to become shareholders in the refinery.
