Drivers, cooks and traders could own shares in Dangote refinery IPO

Aliko Dangote wants drivers, cooks, traders, servants and managers to become shareholders in his refinery, describing the planned offering as an “IPO for the people.”

The president of Dangote Industries Limited signed registration documents on Monday for the proposed initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE at a ceremony in Lagos. The offering comprises 4.1 billion ordinary shares priced at 525 naira each and is expected to raise just over 2 trillion naira. Investors would be able to subscribe for as few as 10 shares.

“

IPO for the people

Dangote said the transaction would help fund the refinery’s expansion, but argued that its broader purpose was to open ownership to people across the continent. “But it is not only to fund the expansion of the refinery, of course, it’s a bigger amount. What we are trying to do is to make sure majority of all these my, our drivers, our cooks, our, you know, servants, our managers, everybody, they will have an opportunity to have a stake in this refinery,” he said.

“

But it is not only to fund the expansion of the refinery, of course, it’s a bigger amount. What we are trying to do is to make sure majority of all these my, our drivers, our cooks, our, you know, servants, our managers, everybody, they will have an opportunity to have a stake in this refinery

He said the offer contained no restriction on who could own shares and linked possible future returns to household expenses outside Nigeria. “When, uh, they will end up having to say that yes, I’m waiting for that check for my dollar, uh, dividend to send for the school fees of my daughter in UK or anywhere in the part of the world,” he said.

The signed prospectus values the offer at about $1.6 billion, while the IPO values the refinery at approximately $49 billion. The offer is scheduled to open on September 14 and close on October 13.

“

There is no segregation on who can own these shares. We want every human being living on the continent to be part of this action, and I’m sure they will continue to be happy now, future, and forever.

Reflecting on the project’s development, Dangote said bankers backed it before the company had chosen a site or obtained a refinery licence. He said the company spent five years searching for suitable land and faced several other hurdles.

“

When, uh, they will end up having to say that yes, I’m waiting for that check for my dollar, uh, dividend to send for the school fees of my daughter in UK or anywhere in the part of the world