The proposed Initial Public Offering of Dangote Petroleum Refinery and Petrochemicals FZE will allow Nigerians and other investors to acquire a stake in the multibillion-naira refinery with as little as N5,250, according to Aliko Dangote, President and Chief Executive Officer of Dangote Group.
Dangote disclosed the minimum subscription requirement on Monday during the signing ceremony for the refinery’s proposed IPO, held at Eko Hotel and Suites in Victoria Island, Lagos.
The planned offer comprises 4.1 billion ordinary shares at N525 per share, with the refinery targeting approximately N2.15 trillion if the offer is fully subscribed.
The funds are expected to support the refinery’s expansion as it continues to increase production and strengthen its position in Nigeria’s petroleum products market.
However, Dangote said the IPO was about more than raising money for the company. He said the offering was deliberately structured to allow ordinary Nigerians, including workers and low-income earners, to participate in the ownership of the refinery.
“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.
‘IPO for the People’
Dangote explained that lowering the entry point was intended to broaden participation and create an opportunity for more Nigerians to become shareholders in one of the country’s most prominent industrial projects.
He said the initiative would extend beyond traditional investors to include employees and ordinary Nigerians from different walks of life.
“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 of the shares was therefore not solely designed to maximise the amount of money raised through the offer. Rather, the objective was to encourage wider participation and give investors an opportunity to build long-term savings through ownership of the business.
Dangote described the proposed offering as “the IPO for the People”, stressing that ownership would be open to a broad range 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.
Refinery moves closer to public listing
The planned IPO represents a major step in the evolution of Dangote Refinery, which has moved from relying on private capital to preparing for participation by public-market investors.
In July, the refinery raised $2.5 billion through a private placement, strengthening its financing position ahead of the next phase of its expansion.
The following month, it secured a $1 billion underwriting programme, comprising a completed and funded $600 million private placement and an additional $400 million underwriting commitment linked to the proposed IPO.
The offer price was subsequently set at N525 per share, with the 4.1 billion shares potentially generating approximately $1.5 billion. The offering was also expected to include a 15 per cent greenshoe option, which could allow additional shares to be sold if demand exceeds the initial offer.
On September 5, the Securities and Exchange Commission approved the proposed IPO, clearing the way for the public offer.
If fully subscribed at N525 per share, the 4.1 billion shares would raise about N2.15 trillion.
Growing role in Nigeria’s fuel supply
The IPO comes as Dangote Refinery continues to expand its role in Nigeria’s downstream petroleum sector.
The refinery has become an increasingly important source of locally refined petrol, helping to reduce the country’s dependence on imported refined petroleum products.
In May, the refinery supplied 41.5 million litres of petrol per day, compared with 40.7 million litres in April, while recording average capacity utilisation of 101.25 per cent.
Its activities have also extended beyond Nigeria, with the refinery increasing exports of refined petroleum products to other African markets.
It reportedly exported 456,000 tonnes of refined petroleum products through 12 cargoes to countries including Côte d’Ivoire, Cameroon, Tanzania, Ghana and Togo.
With the proposed IPO, Dangote is now seeking to combine the refinery’s expansion ambitions with a broader ownership structure, potentially bringing thousands of new investors into the company.
For ordinary investors, the N5,250 minimum subscription means that ownership of one of Africa’s largest refineries could be accessible without the substantial capital traditionally associated with investing in major industrial companies.