Nigeria Dangote Refinery Launches N2.15 Trillion IPO On Nigerian Exchange

The Dangote refinery, Africa’s largest oil refinery, on Monday launched its initial public offering (IPO) on the Nigerian Exchange (NGX) in Lagos, offering 4.1 billion ordinary shares at 525 naira each.

The offer will close on Oct. 13, with a minimum subscription of 10 shares at 5,250 naira, according to the IPO terms.

If fully subscribed, the offer is expected to raise 2.15 trillion naira ($1.622billion) to support the refinery’s expansion, according to the terms.

The IPO is open to retail and institutional investors, as well as eligible African investors.

Speaking at the launch, Aliko Dangote, founder of Dangote Refinery, described the offering as the “People’s IPO”, saying it would give members of the public an opportunity to participate in ownership of the refinery.

“We fully share all our prosperity with the people. That’s why we call this ‘People’s IPO’. We know the journey has actually just started. It’s not only about the refinery,” Dangote said.

Dangote said the Dangote Group’s market capitalisation should reach at least $350 billion by 2030, based on a price-to-earnings ratio of 10 times.

“We, as a group, will list every single company that will operate. I don’t know about the others, but I know our own market cap, even at a 10 times P/E ratio by 2030, should not be less than $350 billion,” he said.

Dangote said the conglomerate had raised more funds than it needed to execute its projects, with about $46 billion allocated for group-wide expansion under its 2030 plan.

“The Dangote Group has raised more than we need to execute all our projects. We have about $46 billion allocated for group-wide expansion to achieve our 2030 vision, and we remain on track,” he said.

He also said the refinery could seek a listing outside Africa within the next three to four years.

“From this exchange, then we can go to any other place,” Dangote said, adding that the Nigerian capital market would serve as the group’s base for future listings elsewhere.