By Benson Daniel
Aliko Dangote is set to retain a dominant 84.34 per cent stake in Dangote Petroleum Refinery and Petrochemicals FZE after the company’s planned ₦2.15 trillion initial public offering, according to details contained in the offer prospectus.
The proposed public offer will involve the sale of 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the transaction will raise approximately ₦2.15 trillion and broaden public ownership of one of Africa’s largest refining businesses.
Despite the planned share sale, the prospectus shows that Dangote will continue to maintain controlling ownership of the refinery, ensuring that the company remains firmly within the wider Dangote business empire.
The IPO represents a major development in Nigeria’s capital market and is expected to provide investors with an opportunity to take direct positions in the refinery business.
The company plans to use funds generated from the offer to support its expansion programme, including plans to increase refining capacity significantly over the coming years.
The refinery currently has a processing capacity of about 700,000 barrels per day and is targeting an expansion to 1.4 million barrels per day. The expansion programme is expected to require substantial investment as the company seeks to strengthen its position in the African and global petroleum markets.
The public offer also marks an important shift in the ownership structure of the refinery by bringing individual and institutional investors into the business while leaving Dangote with a clear controlling interest.
The proposed transaction has attracted considerable attention because of the size of the refinery, its strategic importance to Nigeria’s energy sector and the scale of the capital being sought.
Investors will be offered a minimum of 10 shares, valued at ₦5,250 at the offer price, making the transaction accessible to smaller investors as well as larger institutional participants.
The IPO is expected to become one of the largest equity offerings in Nigeria and one of the most significant capital market transactions in Africa.
The refinery has become increasingly important to Nigeria’s petroleum supply chain since commencing operations, with its large scale processing capacity allowing it to supply refined products to the domestic market while also pursuing exports across Africa.
The company’s decision to raise additional capital through the stock market reflects its broader ambition to expand its refining and petrochemical operations and build infrastructure capable of serving markets beyond Nigeria.
For Dangote, retaining an 84.34 per cent stake means the IPO will provide access to fresh capital and a wider shareholder base without surrendering control of the refinery.
The transaction could therefore reshape Nigeria’s capital market while giving investors an opportunity to participate in the future growth of the country’s largest private sector refining project.
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