By Uzoma Marvellous
Aliko Dangote has said the planned Initial Public Offering (IPO) of Dangote Refinery is aimed at giving ordinary Nigerians and Africans an opportunity to own a stake in one of the continent’s biggest industrial ventures.
Dangote, president of Dangote Industries Limited, said the offering was designed to democratise the capital market by bringing people who have traditionally been excluded from major investment opportunities into the ownership of the refinery.
He spoke in an exclusive interview with Arise TV.
According to him, the company is targeting about 10 million shareholders, including small business owners and low-income earners, with the aim of allowing them to benefit from the refinery’s growth.
“We want to democratise the capital market,” Dangote said.
He explained that the IPO was not intended merely as an opportunity for investors to buy shares and trade them for short-term gains, but as a means of enabling families and ordinary Nigerians to build wealth over time.
Dangote said the scale of the proposed ownership could eventually be so large that the company might have to hold its Annual General Meeting in a stadium to accommodate its millions of shareholders.
He also said the company would prioritise participation by low-income earners, stressing that ownership of the refinery should not be restricted to wealthy investors.
For Africans outside Nigeria interested in participating, Dangote said the shares could be purchased digitally through platforms, including POS channels, with the refinery bearing the transaction commission so investors would not be charged for the service.
He also identified PAPS, a payment platform developed by Afreximbank, as another avenue through which investors across Africa could participate in the offer.
Dangote said regulatory restrictions had previously prevented the company from actively marketing the offer before its opening, but investors would now be able to study the offer and participate during the subscription period.
He stressed that funds raised through the IPO would be invested in the company and not paid into his personal account.
According to him, investors would instead gain exposure to the future growth of the refinery and its planned expansion.
Dangote said the refinery is expected to expand its capacity to 1.4 million barrels per day while also developing its petrochemical operations.
He said the facility would eventually produce petrochemicals, including materials used in plastics and linear alkylbenzene, a key ingredient in detergent production.
The businessman also said the refinery’s revenues were essentially dollarised, which he argued would provide shareholders with some protection against naira depreciation.
He added that investors would have the option of receiving dividends in either naira or dollars.
Dangote expressed confidence in the refinery’s future earnings, saying investors should assess its earning potential under normal operating conditions rather than against disruptions arising from the Middle East conflict.
He said January and February were affected by repairs and other activities at the facility, meaning the refinery did not operate at full capacity during the period.
With the facility now operating, Dangote said its improved performance should be reflected in the company’s nine-month results.
He further projected that the company could become the biggest company in Africa within three years.
Dangote also indicated that strong demand for the offer could lead to an increase in the number of shares allocated to investors, potentially raising the allocation from about 1.6 billion shares to two billion shares, an increase of about 30 per cent.
He said the central objective of the offering was to broaden ownership, allowing ordinary Nigerians and Africans to have a stake in the value being created by a major African industrial enterprise.
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