Dangote Launches N2.15 Trillion IPO for Wealth Creation

On September 14, 2023, Aliko Dangote, President and Chief Executive Officer of Dangote Industries Ltd., unveiled a N2.15 trillion Initial Public Offering (IPO) for Dangote Petroleum Refinery and Petrochemicals (FZE) at the Nigerian Exchange in Lagos. The IPO comprises 4.1 billion new ordinary shares priced at N525 per share, with a minimum subscription of 10 shares valued at N5,250.

The subscription process utilizes approximately 55 digital channels across 20 banks, two mobile money operators, NGX’s Invest platform, and 32 fintechs, targeting 10 million investors. The IPO is set to close on October 13, with a listing on the Nigerian Exchange expected in November.

Dangote emphasized that the IPO is not primarily for raising funds, as the group had already secured $2.5 billion through a private placement. He projected that the refinery could become Africa’s largest company by 2026 and highlighted plans for expansion in refining and petrochemicals, including a new refinery in Lamu, Kenya.