Speaking at the Qatar Economic Forum, powered by Bloomberg, Dangote said the company had initially planned to raise $1 billion through the private placement. However, demand reached $3.7 billion, allowing the refinery to take more than originally planned while still returning about $1.2 billion to investors.
Dangote said the decision was part of a broader effort to “democratise” ownership and bring more Africans into the capital markets.
“Now we went back to still try and invite the smaller shareholders, you know, so they too can have a sense of belonging in what we are doing, and it’s not really the refinery, you know, we have other businesses that are coming into the exchange,” Dangote said.
The refinery has now opened its public offering in Nigeria, with the IPO aimed at allowing more investors to own shares in the company.
Dangote said the company’s plan is not simply to raise money but to bring more people into the ownership of major African businesses. He said the refinery could eventually have as many as 10 million shareholders.
The refinery currently has a capacity of 700,000 barrels per day, but Dangote plans to double that to 1.4 million barrels per day by the first quarter of 2029.
US listing planned.
After the expansion, the company is also considering a listing on the New York Stock Exchange. “We want to list first in Nigeria and then hopefully in New York,” Dangote said.
A US listing would give the refinery access to a broader international investor base as it expands its operations.
Dangote also said the group is planning a 700,000-barrel-per-day refinery in Kenya, alongside pipelines that would connect different parts of Africa.
The Dangote Refinery IPO therefore forms part of a wider plan to expand the company, bring more Africans into its ownership and eventually attract a larger pool of international investors.
Source: Africabusinessinsider