DANGOTE: DRIVERS, COOKS, TRADERS, MANAGERS CAN OWN REFINERY SHARES

By Aishat Momoh. O.

President of Dangote Industries Limited, Aliko Dangote, has described the proposed initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE as an “IPO for the people”, saying drivers, cooks, traders, domestic staff and managers will have the opportunity to own shares in the massive industrial facility.

Dangote made the disclosure on Monday in Lagos at the signing ceremony for the refinery’s IPO registration documents, saying the initiative was designed to democratise ownership of the refinery beyond institutional and wealthy investors.

The offer comprises 4.1 billion ordinary shares priced at N525 each and is expected to raise slightly above N2tn, according to Dangote.

The minimum subscription is 10 shares.

Dangote said the transaction was not solely aimed at raising funds for the expansion of the refinery, but also at giving ordinary Nigerians and Africans an opportunity to own a stake in the facility.

“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.

He added, “So, this is why we have actually called it the IPO for the people. This is why we say that this is democratizing.”

“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 said.

The businessman also highlighted the potential returns investors could receive from their investment, particularly the possibility of dollar-denominated dividends.

He said such dividends could provide shareholders with foreign currency that could be used to 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 puts the value of the offer at about $1.6bn, while the IPO values the refinery at approximately $49bn.

The public offer is scheduled to open on September 14 and close on October 13.

Reflecting on the refinery’s long journey to the capital market, Dangote recalled the challenges the company faced before settling on its current location at the Lekki Free Zone.

He said bankers provided financial backing at a time when the company had neither finalised the refinery’s location nor obtained its 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.

According to Dangote, the company spent about five years searching for suitable land for the project.

He said the company spent three years and eight months at Olokola before eventually moving to the Lekki Free Zone, where it spent more than another year and a half before gaining access to the land.

“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.

Dangote also recalled resistance from members of the host community during the process of gaining access to the Lekki site.

He acknowledged the contributions of former Lagos governors Babatunde Fashola and Akinwunmi Ambode, as well as incumbent Governor Babajide Sanwo-Olu, to the development of the project.

“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,” he said.

Expressing gratitude for reaching the IPO stage, Dangote said, “So today, I am indeed grateful to Almighty Allah for having spared our lives to witness this day.”

Dangote urged Nigerians and other Africans to take greater responsibility for developing their economies and creating prosperity on the continent.

“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,” he said.

He said greater economic independence would give African countries more leverage in negotiating with external partners.

“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,” he added.

Describing the refinery as more than an industrial project, Dangote said its impact would extend across the continent.

“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 said.

He added that the development demonstrated that Africans could pursue ambitious projects through determination and sustained investment.

“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,” Dangote said.

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.

He said the group had adjusted its investment strategy as it continued to expand its operations within Nigeria and 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 added.

Dangote cited expansion plans in Ethiopia, Kenya, Tanzania and Namibia, saying the group’s activities had also encouraged other African entrepreneurs to pursue industrial development.

Meanwhile, 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.

The proposed public offer is expected to open to investors on September 14.