IPO: Investment sites overwhelmed as Dangote eyes $350bn

President of Dangote Industries Limited (DIL), Aliko Dangote, yesterday said the Dangote Group has secured about $46bn to finance its group-wide expansion plans as it targets a market capitalisation of at least $350bn by 2030.

He spoke as the Dangote refinery IPO officially opened its initial public offering (IPO) on Monday, offering 4.1 billion ordinary shares at N525 each.

The offer will close on October 13, with a minimum subscription of 10 shares at N5,250, according to the IPO terms.

The offer is expected to raise N2.15 trillion, if fully subscribed, for the refinery’s expansion operations.

Dangote formally opened the offer by sounding the gong at the Nigerian Exchange (NGX) in Lagos.

Speaking during ‘Fact Behind The Offer’ presentation at the NGX, Dangote described the offer as the “People’s IPO”, saying members of the public would have an opportunity to participate in the refinery’s ownership.

He said the IPO will democratise wealth creation.

“An asset of this magnitude should not create value for only a very few people. It should create value for millions of people, not only Nigerians, but all over the world,” Dangote said.

“We fully share all our prosperity with the people. That’s why we call this ‘People’s IPO’. We know the journey has actually just started. It’s not only about the refinery,” he said.

Dangote said the group’s market capitalisation should reach at least $350 billion by 2030, based on a 10-times price-to-earnings ratio.

“We, as a group, will list every single company that will operate. I don’t know about the others, but I know our own market cap, even at a 10 times P/E ratio by 2030, should not be less than $350 billion,” he said.

Dangote said the conglomerate had raised more funds than it needed to execute all its projects, with about $46 billion allocated for group-wide expansion.

“The Dangote Group has raised more than we need to execute all our projects. We have about $46 billion allocated for group-wide expansion to achieve our 2030 vision, and we remain on track,” he said.

He said the refinery would also list outside Africa within the next three to four years.

“From this exchange, then we can go to any other place,” the industrialist said.

Dangote said the Nigerian capital market would serve as the group’s base for future listings elsewhere.

Dangote said the broad-based ownership would provide investors with an opportunity to preserve and grow their wealth through exposure to a business whose revenues are largely dollar-linked.

He said this could particularly benefit Nigerians with financial obligations abroad, including payment of school fees, as investors would receive dividends in dollars.

He urged Nigerians and Africans to seize the opportunity, saying the refinery could become Africa’s largest company by end of the year.

Chairman of the Nigerian Exchange(NGX) Umaru Kwairanga said the offer of 4.1 billion ordinary shares at N525 per share to raise about N2.15 trillion was significant in scale and importance.

According to him, the transaction is an opportunity to demonstrate the capacity of the capital market to support enterprise and provide investors with confidence in the integrity, transparency and efficiency of the market.

He described Dangote Petroleum Refinery as one of the most significant industrial investment projects on the continent and a demonstration of what Nigerian enterprise could conceive, finance and execute.

He said deeper and more effective capital markets were required to connect African savings with African enterprises and finance businesses capable of competing globally.

“Transa Dangote IPO: N10bn sale recorded in one hour; coy targets $350bn ctions of this scale strengthen our proposition and demonstrate what our markets can achieve when capital, enterprise and ambition come together,” he said.

The NGX chairman said the development of Africa required Africans to actively participate in businesses and investments on the continent.

…Investors show strong appetite, investment sites overwhelmed

Meanwhile, investors have shown strong appetite for shares in Dangote Refinery, subscribing more than N10 billion within hours of the company’s Initial Public Offering (IPO) opening on Monday.

Chairman of the Nigerian Exchange(NGX) Umaru Kwairanga, disclosed the subscription figure at the Facts Behind the Figures ceremony held at the NGX in Lagos.

“From eight o’clock today, we are talking of over 10 billion and above that have already joined,” Kwairanga said.

His disclosure came shortly after Chairman of Access Holdings, Aigboje Aig-Imoukhuede, revealed that billions of naira had already been subscribed by thousands of investors within minutes of the offer opening.

“With this particular, sterling, historic offer and what I have seen in the data room, where already billions of naira have been subscribed by thousands of investors within minutes or under an hour, you are a blessing to humanity,” Aig-Imoukhuede said.

Our correspondent reports that the IPO launch triggered a surge in demand that overwhelmed two popular Nigerian investment platforms, Bamboo and Cowrywise.

Both platforms reported unusually high traffic as retail investors rushed to subscribe to the offer, with some users unable to log into their accounts.

Bamboo announced the access difficulties on X, attributing them to the unexpected volume of traffic generated by investors seeking to participate in the Dangote IPO.

“Hey everyone, we’re getting much higher than expected traffic trying to get into the Dangote IPO and it’s making it difficult for some users to log into the Bamboo app. We’re working on a fix and it will be up and running shortly,” the platform said.

Cowrywise also acknowledged increased traffic on its platform.

“We’re currently seeing more traffic than usual on the Cowrywise app. Our team is already on it and working to get things back to normal. Thanks for your patience, everyone,” it said in a post on X.

The two platforms are among the approved fintech channels through which investors can subscribe to the Dangote Refinery public offer.

…SEC warns investors against unauthorized channels

The Securities and Exchange Commission (SEC) has cautioned prospective investors to be vigilant and use only approved channels when subscribing to the Dangote refinery IPO.

In a public notice signed by its management, the Commission confirmed that it had approved the refinery’s public offer and urged investors to ensure that all applications and payments are processed exclusively through authorised receiving agents, approved subscription platforms, and designated channels.

The warning comes as interest in the N2.15 trillion share sale continues to surge, with millions of potential retail investors expected to participate in what is widely regarded as one of the largest public offerings in Nigeria’s capital market history.

SEC outlined a series of measures designed to help investors avoid falling victim to fraudulent schemes during the subscription period.

According to the Commission, investors should obtain information about the offer only from official SEC channels, the issuer’s authorised communication platforms, and other approved sources.

The regulator also advised investors to verify the authenticity of websites, links, and digital platforms before providing personal or financial information.

The Commission urged members of the public to follow only the officially announced subscription process and timetable, warning against transferring funds to individuals or entities claiming to facilitate subscriptions outside approved channels.

SEC further advised investors to confirm that any stockbroker, bank, fintech platform, or capital market operator handling subscriptions is duly registered and authorised for the offer.

The regulator also warned against responding to unsolicited phone calls, WhatsApp messages, emails, social media advertisements, or other communications promising guaranteed allotments or preferential access to shares.

Investors were encouraged to carefully review the approved prospectus and understand the risks, terms, and conditions attached to the investment before making any commitment.