Dangote Refinery Plans Additional 30% Share Sale as Investors Rush IPO
- Dangote may release 30% more refinery shares if IPO demand exceeds supply, widening public ownership
- Dangote says he welcomes dilution and hopes to attract up to 10 million shareholders to the refinery
- The industrialist targets Africa’s biggest company within three years as repairs support stronger long-term refinery performance
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Billionaire industrialist Aliko Dangote has revealed plans to release significantly more shares in Dangote Petroleum Refinery to public investors, potentially widening ownership of the multibillion-dollar company beyond its initial public offering.
Dangote said the company could offer an additional 30% or more of its shares, particularly if demand for the ongoing IPO exceeds the number of shares currently available.
Source: Getty Images
Speaking during an interview with Arise News on Tuesday, Dangote said the intention was to ensure that more Nigerians and other investors could participate in the refinery's growth.
“We will give up more shares. To about 30 percent more, in case of oversubscription and do whatever it takes to make sure everyone is involved,” he said.
Dangote ready for bigger dilution
The planned share sale could substantially increase the proportion of Dangote Refinery owned by public investors and reduce the billionaire's controlling stake.
Dangote stressed that he was comfortable with greater dilution if it allowed millions of people to become shareholders in the refinery.
“I don’t mind being diluted as much as possible, as I want people to be part of this journey, the IPO,” he said.
He disclosed that the long-term ambition is to attract as many as 10 million shareholders, potentially creating one of the broadest shareholder bases for a Nigerian-listed company.
Dangote said the vision was inspired partly by global companies such as Amazon, Microsoft and Tesla, whose expansion over the years created substantial wealth for early and long-term shareholders.
The industrialist said the refinery's annual general meeting could eventually become so large that a stadium, rather than a conventional hotel venue, might be required.
Refinery targets stronger long-term growth
Dangote also dismissed concerns that disruptions linked to the Middle East conflict would fundamentally alter the refinery's long-term performance expectations.
According to him, the company's earnings projections are based on normal operating conditions rather than temporary market disruptions caused by geopolitical tensions.
“The refinery will earn a substantial amount of money,” Dangote said, adding that its EBITDA and income projections were calculated using normal business conditions.
He disclosed that the refinery did not operate in January and February because of repair work intended to improve efficiency.
Dangote said investors would get a clearer picture of the refinery's performance when its nine-month financial figures are released.
Source: Getty Images
Dangote wants millions of Nigerians as shareholders
Beyond raising capital, Dangote presented the IPO as part of a broader strategy to expand public ownership of one of Africa's biggest industrial projects.
He said his ambition was for the refinery to become Africa's biggest company within three years, supported by stronger profitability and expansion.
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“It’s a dream, it’s a vision. I know where it’s going. In three years I’m going to be the biggest company in Africa and with profitability,” he said.
If the additional shares are eventually offered, the move could considerably expand the refinery's public float and give more retail and institutional investors exposure to the business.
How to buy Dangote Refinery shares
Legit.ng earlier reported that PiggyVest has opened a new digital route for millions of Nigerians to buy shares in the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering (IPO).
The savings and investment platform partnered with Chapel Hill Denham, one of the joint issuing houses for the offer, to allow eligible users to subscribe directly through its platform.
Source: Legit.ng
