Dangote unveils N2.15 trillion IPO, says offer to democratise wealth creation

Aliko Dangote, the CEO of Dangote Industries Ltd., opened the Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals (FZE) on Monday, September 14, at the Nigerian Exchange in Lagos. Dangote described the offer as a historic moment for Nigeria's capital market and Africa's industrial landscape, allowing ordinary Nigerians and global investors to own shares in one of Africa's key projects.

The IPO consists of 4.1 billion new ordinary shares, priced at N525 each, with a minimum investment of 10 shares totaling N5,250. The shares were offered through 55 digital channels, including 20 banks, two mobile money platforms, NGX's Invest platform, and 32 fintech companies, aiming to attract 10 million investors. The subscription period closed on October 13, with the shares expected to list on NGX in November.

Dangote emphasized that the primary goal was not to raise funds, as the company had already met its financing requirements through a private placement. He highlighted the potential for broad-based ownership to help investors hedge against obligations, such as school fees abroad, with dividends paid in dollars. Dangote anticipates the refinery could become Africa's largest company by the end of 2026, with plans to expand petrochemical production capabilities.

The company aims to more than double refining capacity to 1.4 million barrels per day and target EBITDA above $12 billion. The Lekki Free Zone refinery, already a major supplier of aviation fuel to Europe, is a key component in Africa's industrial growth strategy.