Investors participating in the Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals may receive dividends in United States dollars, while the company is considering a potential listing in the US within the next three to four years.
President and Chief Executive Officer of Dangote Group, Aliko Dangote, disclosed this on Monday at the facts-behind-the-offer presentation and opening gong ceremony for the refinery’s IPO at the Nigerian Exchange Limited (NGX) in Lagos.
Dangote said the refinery’s largely dollar-linked business model could help investors preserve the value of their investment against fluctuations in the naira. “You will be getting your dividend in dollars,” he said.
He explained that because the underlying business is substantially dollarised, investors would have exposure to earnings linked to foreign currency, adding that the structure could provide some protection against further naira depreciation.
Dangote also revealed that the Group was considering an international listing for the refinery, potentially in the United States within the next three to four years.
He said such a listing could broaden the refinery’s ownership base and provide access to a wider pool of international investors.
The proposed US listing would come after the refinery’s transition from a privately held asset to a publicly owned company through its Nigerian IPO.
Dangote said the public offer was not primarily intended to raise funds, noting that the Group had already secured financing for its existing investment plans.
Rather, he said the IPO was aimed at expanding public participation in the refinery’s ownership.
“The primary purpose of this offer is to democratise wealth creation,” Dangote said.
He identified teachers, civil servants and Nigerians with families abroad among those who could participate in the ownership opportunity, stressing that the refinery should create value for a broad base of investors.
Dangote also urged prospective investors to focus on the company’s future prospects rather than only its current performance.
“You are buying the future,” he said, describing the refinery as an operating business with assets, revenues and growth opportunities.
He expressed confidence in the company’s long-term prospects, saying its scale and operations could position it among Africa’s major companies.
“This is a company that has already moved beyond the stage of promises. We are now dealing with reality.
“You are not investing in a story. You are investing in an operating business with significant assets, revenues and growth opportunities,” he said.
On operations, Dangote said the refinery had recorded strong demand for its petroleum products, particularly aviation fuel.
He disclosed that its jet fuel production for August and September had effectively been sold, apart from volumes reserved for specific customers.
Dangote also argued that the global transition away from fossil fuels would not immediately eliminate the relevance of crude oil, noting its use as a feedstock for petrochemicals and manufacturing in addition to fuel production.
Meanwhile, Chairman of NGX Group, Umaru Kwairanga, said the IPO would demonstrate the capacity of Nigeria’s capital market to mobilise funds for large-scale businesses.
Kwairanga said the offer was valued at more than $1.6 billion and could reach $2 billion if the greenshoe option was fully exercised.
He described it as Africa’s biggest IPO and said the transaction represented an opportunity to connect Nigerian and African savings with a major Nigerian enterprise.
“A transaction of this scale tests that proposition and demonstrates what our market can achieve when capital, enterprise, and ambition come together,” Kwairanga said.
Lagos State Governor, Babajide Sanwo-Olu, described the IPO as a major development for Nigeria’s capital market and urged market operators to ensure broad participation.
Sanwo-Olu said the offer could create opportunities for traders, technology entrepreneurs, farmers and other Nigerians to participate in the ownership of a major Nigerian enterprise.
“This is about market creation. This is about deepening the market. This is about opening opportunity for everybody, from the market woman that is in Balogun, to the young tech savvy that is in Yaba, to the farmer that is in Kano,” he said.
Chairperson of the Botswana Stock Exchange, Neo Mooki, also encouraged African investors to participate in the offer.
Mooki, who said she had visited the refinery with Botswana’s Vice President and her team, described the facility as an example of African industrial ambition supported by capital and execution. “Africa is not poor. It is unmonetised,” she said.
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