The initial public offering of the Dangote Refinery officially opened on the Nigerian Exchange (NGX) on Monday, giving investors an opportunity to buy shares in one of Nigeria’s biggest industrial projects.
The offer involves 4.1 billion ordinary shares priced at N525 each. It will remain open until October 13, according to the terms of the offer. Investors can subscribe for a minimum of 10 shares, which will cost N5,250.
If the offer is fully subscribed, Dangote Refinery is expected to raise about N2.15 trillion. The funds will support the company’s expansion and other operational plans. Aliko Dangote, President of Dangote Industries Limited, formally opened the offer at the NGX in Lagos by sounding the traditional gong to mark the start of trading activities. The IPO is open to retail investors, institutional investors and eligible African investors, expanding access to ownership of the refinery beyond major corporate investors.
Dangote described the offer as the “People’s IPO”, saying Nigerians would have an opportunity to participate in the 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,” he said.
The public offer is also part of Dangote Group’s wider plans to expand its businesses and increase its presence in the capital market. Dangote said the group is targeting a market capitalisation of at least $350 billion by 2030. He said the target was based on applying 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. The businessman also said the group has secured substantial funding for its expansion plans.
“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.
The refinery is expected to play a major role in Nigeria’s petroleum industry as the country seeks to increase domestic refining and reduce its dependence on imported petroleum products. The listing also represents a major development for the Nigerian capital market, with the refinery expected to become one of the largest companies on the exchange once its shares are listed and begin trading. Dangote further disclosed that 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,” the industrialist said.
The move would give the refinery access to international investors while further increasing its visibility in global capital markets. The Dangote Refinery IPO follows regulatory approval and preparations that have generated significant interest among investors. The listing is also expected to deepen the Nigerian stock market by increasing the value and number of major companies available to investors. For Nigerians, the offer provides an opportunity to participate directly in the ownership of a major industrial asset. For Dangote Group, it represents another step towards its broader expansion and capital market plans.
With the offer now open, investor interest and the level of subscription will determine how successfully the refinery raises the targeted N2.15 trillion.
