Drivers, cooks, traders can own refinery shares — Dangote
by Moronfolu Adeyemi · The Eagle OnlinePresident of Dangote Industries Limited, Aliko Dangote, has said drivers, cooks, traders, servants and managers will have the opportunity to own shares in the Dangote Petroleum Refinery and Petrochemicals FZE as the company prepares for its proposed initial public offering.
Dangote made the disclosure on Monday at the signing ceremony for the IPO registration documents in Lagos, describing the offer as an “IPO for the people” aimed at widening ownership of the massive industrial facility.
The offer comprises 4.1 billion ordinary shares priced at N525 each and is expected to raise just over N2tn, with a minimum subscription of 10 shares.
Dangote said the offer was not simply about raising money for the refinery’s expansion, but also about allowing ordinary Nigerians and other Africans to take ownership positions in the business.
“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.
“So, this is why we have actually called it the IPO for the people. This is why we say that this is democratizing,” he added.
The businessman stressed that there would be no restriction based on status or class for those seeking to buy the shares.
“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 also highlighted the potential returns to investors, pointing to the possibility of dollar-denominated dividends that shareholders could use for expenses outside Nigeria.
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“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 about $49bn. The offer is scheduled to open on September 14 and close on October 13.
Reflecting on the refinery’s journey, Dangote recalled the early confidence shown by the company’s bankers, who provided financial backing before the final location of the project had been determined or its licence secured.
“…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.
He said the search for a suitable location presented several challenges and lasted years.
“Even though we had very false starts, several hurdles, in fact, on the land itself, we struggle for five years trying to find which land we’re going to use,” he said.
According to Dangote, the company spent three years and eight months at Olokola before moving to the Lekki Free Zone.
“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.
He also recalled resistance from members of the host community during efforts to access the Lekki site.
“We tried to enter, but I think the first fight where Mr. Dishi lost his life at the Lekki Free Zone because, you know, there was fight with the community and, you know, not on our own side. Our side is right inside, but the community were actually resisting, and that actually made them, you know, to understand what we wanted to do, and later on I think they allowed us in.”
Dangote acknowledged the contributions of former Lagos governors Babatunde Fashola and Akinwunmi Ambode, as well as the incumbent, 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.”
As the refinery reaches the IPO stage, Dangote expressed gratitude for being able to witness the development.
“So today, I am indeed grateful to Almighty Allah for having spared our lives to witness this day.”
He also called on Nigerians and Africans to take greater responsibility for the development of their economies.
“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.”
“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.”
Dangote said the refinery represented more than an industrial project, describing it as part of a wider economic transformation across Africa.
“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 added, “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 the refinery was also central to the Dangote Group’s wider push to accelerate industrialisation on the continent, with energy security forming a key part of that strategy.
“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 the group had also adjusted its outlook as it continued to invest in Nigeria while expanding into other African markets.
“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.”
Dangote cited expansion plans in Ethiopia, Kenya, Tanzania and Namibia, saying the group’s activities had encouraged other African entrepreneurs to pursue industrial development.
“Through these plans, we have also inspired many other African entrepreneurs to join us in this journey to industrialize our continent.”
Meanwhile, the public offer is expected to open to investors on September 14.
An independent check on Monday afternoon showed that the refinery had not yet been officially listed or commenced trading on the Nigerian Exchange, Bamboo and other investment platforms.
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