Aliko Dangote Offers Nigerians Chance To Own Shares in Refinery
- Aliko Dangote described the Dangote Refinery IPO as an 'IPO for the people', open to all Nigerians and Africans regardless of income level
- The offer covers 4.1 billion shares priced at N525 each, targeting over N2 trillion in total fundraising for the refinery
- The minimum subscription is just 10 shares, meaning ordinary Nigerians can enter the offer without committing large sums
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Aliko Dangote, President of Dangote Industries Limited, said on Monday that domestic workers, traders, drivers, cooks, and managers will all be eligible to buy shares in the Dangote Petroleum Refinery and Petrochemicals when it launches its Initial Public Offering (IPO).
Dangote announced the signing ceremony for the IPO's registration documents in Lagos, calling the offer an "IPO for the people" designed to give ordinary Nigerians and other Africans a direct stake in Africa's largest oil refinery.
Source: Getty Images
He added:
"What we are trying to do is to make sure the majority of all these my our drivers, our cooks, our servants, our managers, everybody, they will have an opportunity to have a stake in this refinery.
"We want every human being living on the continent to be part of this action."
What N500,000 Can Buy
The offer price is set at N525 per share. An investor with N500,000 can purchase 952 shares, spending N499,800.
The minimum subscription has been fixed at just 10 shares, about N5,250. This means participation does not require a large upfront commitment, Punch reports.
The full offer covers 4.1 billion ordinary shares and is expected to raise slightly above N2 trillion. The offer opens on September 14 and closes on October 13.
Dollar Dividends and Expansion Plans
Beyond share ownership, Dangote pointed to dollar-denominated dividends as a potential benefit for investors, saying such returns could help shareholders cover expenses outside Nigeria.
He said the IPO was also intended to fund the refinery's planned expansion, noting that the group was pursuing investments in Ethiopia, Kenya, Tanzania, and Namibia.
Source: Getty Images
Dangote reflected on the journey from conception to public offer, noting that bankers backed the project even before a site was secured or a refinery licence obtained.
The company spent three years and eight months at Olokola before eventually settling at the Lekki Free Zone.
He credited former Lagos governors Babatunde Fashola and Akinwunmi Ambode, as well as current Governor Babajide Sanwo-Olu, for their roles in the project's development.
Steps to buy shares from September 14 with N5,250
Earlier, Legit.ng reported that the Securities and Exchange Commission has approved the Dangote Petroleum Refinery and Petrochemicals FZE initial public offering, clearing the way for Nigerians and other eligible investors to buy into one of Africa's biggest industrial projects.
The regulator approved the offer of 4.1 billion ordinary shares at N525 each, a transaction that could raise roughly N2.15 trillion if fully subscribed.
The SEC also registered the refinery's existing 120.13 billion ordinary shares.
Source: Legit.ng
