People’s IPO Opens with $49 Billion Share Capital

L-R: Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin; Company Secretary, Dangote Petroleun Refinery & Petrochemicals, Christian Meseko; President/CE, Dangote Industries Limited, Aliko Dangote; Group Managing Director / Chief Executive Officer, Vetiva Capital Management Limited, Chuka Eseka and CEO, Dangote Petroleun Refinery & Petrochemicals, David Bird; at the signing ceremony of Dangote Petroleum Refinery & Petrochemicals FZE Initial Public Offering (IPO) in Lagos on Monday • Dangote Refinery seeking to democratise ownership across Africa Dangote Petroleum Refinery and Petrochemicals (DPRP) has signed the registration documents for the biggest Initial Public Offering (IPO) in Africa, valued at approximately N2.2 trillion, about $1.6 billion. The people-centric offering targets up to 10 million Nigerian investors, including low income earners, through a Bank Biometric Verification Number (BVN)-integrated subscription process. President and Chief Executive of Dangote Petroleum Refinery and Petrochemicals, Alhaji Aliko Dangote, led the company’s team to sign registration documents for the IPO, declaring that drivers, cooks, traders and “everybody” will have a chance to own shares in the $49 billion refinery. The offer comprises 4.1 billion ordinary shares at N525 each, with an overallotment option of up to 30 per cent to accommodate strong demand. The IPO is scheduled to open on September 14 and close on October 13, with listing expected on the Main Board of Nigerian Exchange Limited (NGX) upon completion of regulatory approvals. Speaking at the signing ceremony in Lagos, the president and chief executive of Dangote Industries Limited described the transaction as a defining moment for the company and the continent. Dangote said, “Today’s signing ceremony marks another defining milestone in the evolution of DPRP. We set out to build a world-class refinery capable of transforming Nigeria’s energy landscape and strengthening Africa’s energy security. “Through this IPO, we are opening ownership of this strategic asset to a broader community of investors and creating an opportunity for Nigerians to participate directly in its future growth and value creation.” He said it was an “IPO for the people” designed to democratise ownership. “But it is not only to fund the expansion of the refinery, of course, it’s a bigger amount,” he said. Dangote added, “What we are trying to do is to make sure majority of all these my—our drivers, our cooks, our, you know, servants, our managers, everybody, they will have an opportunity to have a stake in this refinery.” Dangote said the BVN-integrated platform was central to the inclusion drive. He stated, “This offer presents Nigerians with a unique opportunity to become co-owners of a world-class refinery that is transforming Africa’s energy landscape. By simplifying the subscription process through BVN integration and digital application channels, we are opening the door for millions of citizens to participate in the growth story of this strategic national asset.” He framed the offer as deliberate inclusion. Dangote stated, “So, this is why we have actually called it the IPO for the people. This is why we say that this is democratising. “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, and I’m sure they will continue to be happy now, future, and forever.” The minimum subscription will be 10 shares, a threshold Dangote said was set to ensure retail participation across income levels. The billionaire also dangled the prospect of dollar-denominated returns. He stated, “When, uh, they will end up having to say that, yes, I’m waiting for that check for my dollar, uh, dividend to send for the school fees of my daughter in UK or anywhere in the world.” Reflecting on the refinery’s path, Dangote recalled the early trust from bankers and the land struggles that delayed the project, including five years search for a site and resistance at Lekki Free Zone. He acknowledged successive Lagos governors Fashola, Ambode, and Sanwo-Olu for their support. Dangote described the IPO as a continental milestone. According to him, “The refinery means so much to our continent. From the man working in the Simandou mines, to the woman cultivating the fertile fields of Amhara, to the fisherman in Walvis Bay, and the custodians of our ancient history at the northern edge of Africa, this project represents a shared African achievement. Today is, indeed, a day of collective pride.” He made a passionate call to ambition. “This event signals that we can dream and dream big while we create prosperity for our people,” Dangote said. “Today also shows that nothing is impossible for us to achieve once we are focused and determined,” he added. Dangote tied the refinery to the continent’s energy security and industrialisation drive. He said, “Our Vision 2030 mantra at the Dangote Group is ‘accelerating Africa’s industrialization.’ We have learned the hard way and we cannot industrialise if we do not have energy security.” He cited the planned expansions in Ethiopia, Kenya, Tanzania, and Namibia. The Investment Case: World Scale, World Class Managing Director of Dangote Refinery and Petrochemicals, Mr. David Bird, laid out the commercial thesis. Bird stated, “If you’ll permit me to stand on existing protocols, let’s talk about the investment case that we’re signing today. “We talk about merchant, world class and world scale.” He described the 700,000 barrels per day facility as unique. Bird said, “This is not just a refinery in a crude producing nation sitting on the end of a pipeline processing one crude and only serving a domestic market. This is the world’s most modern, youngest, most energy efficient, most automated, most data rich refinery. And our business model is merchant refining, we process a wide variety of crude and feedstocks and we serve a wide variety of markets with a wide variety of products.” He stressed location and flexibility in West Africa’s crude-rich basin and pointed to global relevance. Bird said, “And then as a merchant refiner, yes, we serve Nigeria. Yes, we prioritise West African markets. But no better time than right now can we demonstrate the world class quality of our products because we are the largest jet fuel supplier into Europe.” Bird said the expansion to 1.4 million bpd by 2028 is “fully funded, fully engineered, fully procured” and will make Dangote “the largest integrated refinery and petrochemical complex on the planet right here in Nigeria”. He said the Vision 2030 plan included diversifying into petrochemicals and building distribution infrastructure in West Africa, starting with Namibia.