Billionaire industrialist Aliko Dangote has announced plans to release significantly more shares in Dangote Petroleum Refinery to public investors, potentially increasing the multibillion-dollar company's public ownership beyond its initial public offering (IPO). 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.
Dangote Commits to Wider Public Ownership
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.
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.
Targeting 10 Million Shareholders
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 Projects Strong 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.
Ambition to Become Africa's Biggest Company
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. “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.
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 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.
