Aliko Dangote has said the planned initial public offering of the Dangote Petroleum Refinery and Petrochemicals is designed primarily to create broad African ownership rather than raise capital. Speaking on Monday after a signing ceremony for the IPO at the Eko Convention Centre in Lagos, he said the company is aiming for 10 million shareholders across the continent and potentially beyond.
Dangote stressed that the offer is not driven by a need for funds. The refinery already generates strong free cash flow and has previously raised money through bonds and private placements. Investors will be able to buy as few as 10 shares.
“It’s not really about raising money. It’s about getting our own Africans generally to be part and parcel of this,” he said.
He noted that the company could have floated a larger portion of equity if fundraising had been the goal. “If we want to raise money, we know how to raise. That’s why we have a limit. If not, we’d actually offered 20% of the company.”
The strategy, he explained, is intended to give salary earners and ordinary Nigerians the chance to build long-term wealth through share ownership. He compared the ambition to holdings in companies such as Amazon and Coca-Cola, where modest initial investments can grow substantially over time.
Dangote added that the same approach applies to other large projects the group is developing, including its fertiliser operations. “We are creating big corporations where we don’t want to be the only people enjoying. We want to spread this enjoyment to the rest of Africa.”
On the refinery’s projected returns, he said calculations rest on normal market conditions rather than temporary spikes linked to geopolitical events such as the Russia-Ukraine war or tensions in the Middle East. “Our own basis of calculation is based on the normal days… We don’t base our business based on crisis.”
Asked about interest from strategic investors, Dangote declined to name parties because of non-disclosure agreements but confirmed that other investors and governments had shown interest. He disclosed that an earlier private placement seeking $1 billion in shares drew 3.7 times that amount in demand. Investors paid $3.7 billion into the company’s accounts; the company accepted $2.5 billion and returned the remaining $1.2 billion.
He described the refinery as a multi-generational asset rather than a short- or medium-term project. “This is a lifetime investment. This refinery is not about 10 years, 20, 30, or 50 years.”
The IPO follows regulatory approval for the public offer and the formal signing of transaction documents by the company and its advisers.
Subscription details and the precise size of the offer are expected to be released as the process advances, with the company emphasising accessibility for retail investors across Africa.
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