By Chibuzor Alli
Drivers, cooks, traders, servants and managers will be able to own shares in Dangote Petroleum Refinery and Petrochemicals FZE when its proposed initial public offering opens later this month, Aliko Dangote has said.
The President of Dangote Industries Limited made the disclosure on Monday after signing the registration documents for the proposed IPO in Lagos, describing the offer as an “IPO for the people”.
The offer comprises 4.1 billion ordinary shares priced at N525 each and is expected to raise just over N2tn, according to Dangote.
The minimum subscription will be 10 shares, while the offer is scheduled to open on September 14 and close on October 13.
“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,” Dangote said.
He said the transaction was intended to broaden ownership beyond institutional investors and give people across Africa an opportunity to participate in the refinery.
“So, this is why we have actually called it the IPO for the people. This is why we say that this is democratizing,” he said.
“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.”
Dangote highlights potential dollar dividends
Dangote also pointed to the potential returns investors could receive from the refinery, including the possibility of dollar-denominated dividends.
He said such returns could eventually help shareholders meet 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 $1.6bn, while the IPO places the refinery’s valuation at about $49bn.
The public offer is expected to open on September 14.
Refinery project took years to complete
Reflecting on the refinery’s development, Dangote said the project benefited from the confidence of bankers before the company had finalised its location or obtained a refinery licence.
“…bankers without them even seeing which site we were going to use. Without seeing the license, we didn’t even have a license of the refinery. But the shared trust between us and our bankers made them to put money on the table without asking too many questions. We thank you for your trust,” he said.
He said the company spent years searching for suitable land before settling on its current location at the Lekki Free Zone.
“Even though we had very false starts, several hurdles, in fact, on the land itself, we struggle for five years trying to find which land we’re going to use,” he said.
Dangote said the company spent three years and eight months at Olokola before moving to Lekki.
“Three years, eight months in Olokola, and then we spent over a year and a half before we got access to our land at Lekki Free Zone,” he said.
He also recalled resistance from members of the community when the company attempted to access the Lekki site.
“We tried to enter, but I think the first fight where Mr. Dishi lost his life at the Lekki Free Zone because, you know, there was fight with the community and, you know, not on our own side. Our side is right inside, but the community were actually resisting, and that actually made them, you know, to understand what we wanted to do, and later on I think they allowed us in.”
Dangote acknowledged the contributions of former Lagos governors Babatunde Fashola and Akinwunmi Ambode, as well as the incumbent governor, Babajide Sanwo-Olu.
“So, list of names, and the former governor of Lagos, Fashola, and also Ambode, they did extremely very well, and then later on, Sanwo-Olu, they did even better.”
‘Nothing is impossible’
Dangote said he was grateful to have reached the IPO stage of the refinery project.
“So today, I am indeed grateful to Almighty Allah for having spared our lives to witness this day.”
He urged Nigerians and other Africans to take a leading role in developing their economies.
“As I have said repeatedly, we as Nigerians and Africans must be bold and lead the change to develop our economies and our continent. And by doing so, we provide opportunities for our people, we’ll also create prosperity.”
“Only then will the others take us very seriously. Only then we will be in the position to negotiate and walk away with terms that we desire, not those terms that are given to us.”
Dangote said the refinery had significance beyond its industrial value to Nigeria.
“The refinery means so much to our continent, from the man working in Simandou mines to the woman in the rich agricultural fields in Amhara, to the fisherman in Walvis Bay, and to the custodians of our ancient history in the desert at the northern tip of our continent.”
“Today, indeed, is a day of collective pride for all of us.”
He added: “This event signals that we can dream and dream big while we create prosperity for our people. Today also shows that nothing is impossible for us to achieve once we are focused and determined.”
Energy security key to industrialisation
Dangote said the refinery formed part of the Dangote Group’s broader strategy to accelerate industrialisation across Africa.
“Our Vision 2030 mantra at the Dangote Group is ‘accelerating Africa’s industrialization.’ We have learned the hard way and we cannot industrialize if we do not have energy security.”
He said the group had changed its approach as it continued to invest in Nigeria while expanding its operations across the continent.
“That is why there has been a shift in the mindset of the group. As we continue to invest in Nigeria as the powerhouse in Africa, we must also preach and take this gospel to other parts of the continent.”
He cited expansion plans in Ethiopia, Kenya, Tanzania and Namibia, saying the group’s activities had encouraged other African entrepreneurs to pursue industrialisation.
“Through these plans, we have also inspired many other African entrepreneurs to join us in this journey to industrialize our continent.”
The public offer is expected to open to investors on September 14.
An independent check by our correspondent on Monday afternoon on the Nigerian Exchange, Bamboo and other investment platforms showed that the refinery had not yet been officially listed or commenced trading.
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