Dangote plans 30% more share sales after investors rush for IPO

…says Iran war won’t derail refinery performance

Billionaire industrialist, Aliko Dangote, is planning to give up at least 30 percent more of his shares for sale after investors pile into a record public offer, a move expected to deepen participation and expand market penetration.

Speaking on Arise News Tuesday, Dangote, the founder and president of the Dangote Group announced plans to further expand public participation by offering an additional 30-35 percent of the company to the public.

“We will give up more shares. To about 30 percent more, in case of oversubscription and do whatever it takes to make sure everyone is involved,” Dangote said.

Read also: Dangote refinery IPO puts Nigeria’s industrial ambitions to the test

This move will directly reduce his personal holding by the same percentage, expanding the public share from a tight 3.3-3.4 percent float to roughly 33.5 percent free float, fundamentally transforming liquidity on the Nigerian exchange and deepening liquidity on the exchange beyond the initial SEC-approved base float (3.3-3.4 percent) and over-subscription allowances.

The broader float directly supports the group’s long-term strategy to reach a $350 billion market capitalisation by 2030 while democratizing capital ownership across the continent.

Following the opening of the Dangote Petroleum Refinery IPO, Aliko Dangote’s net worth jumped by nearly $20 billion to $51.3 billion on the Forbes Real Time Billionaires List, cementing his status as Africa’s richest man.

Read also: Dangote’s fortune rises to $51.3bn, enters global top 40 as refinery shares trade

The wealth surge coincides with an opening rush on the Nigerian Exchange (NGX) that saw over N1.5 trillion raised within the first six hours of trading, roughly 70 percent of the initial N2.15 trillion target.

Dangote is currently retaining overwhelming control of the refinery, yet he intends to eventually reduce his personal stake substantially.

If the additional 30–35 percentage points are sold to public investors, the refinery could move from being overwhelmingly controlled by its founder to a company in which a much larger share of its economic value is held by Nigerians and institutional investors.

That would make the refinery’s public listing more than a fundraising exercise, It would become a transfer of economic ownership. And that could have implications for the wider Nigerian capital market.

Iran war won’t derail refinery performance

Dangote says the ongoing war involving Iran has not altered the fundamental performance outlook of the Dangote Petroleum Refinery, as the company expects to generate substantial earnings under normal operating conditions.

Africa’s richest man said the refinery’s valuation and earnings outlook were based on normal circumstances rather than the disruptions associated with the war, while noting that the refinery’s operations were affected earlier in the year by repairs.

“The refinery will earn a substantial amount of money, and what we are actually basing our own income on, the EBITDA and co, we are basing under normal circumstances and not this abnormal circumstance where there is war in the middle east” Dangote said in an interview.

He disclosed that the refinery did not operate in January and February because it was undergoing repairs, and they did that so that the Refinery works efficiently and people will see what kind of numbers the refinery is doing when its 9-month figures are out.

The comments come as Dangote opens the refinery’s ownership to the public through an initial public offering, in a move he says is aimed at widening participation in the capital market rather than simply raising funds.

Read also: Dangote IPO crashes top investment apps as retail investors face downtime

The billionaire industrialist said he was prepared to accept significant dilution of his stake if it would allow more Nigerians to participate in the refinery’s growth.

“I don’t mind being diluted as much as possible, as I want people to be part of this journey, the IPO,” Dangote said.

He said the idea was partly inspired by the wealth created for investors in companies such as Amazon, Microsoft and Tesla, where shareholders benefited as the businesses grew.

“Looking at what has happened at Amazon, Microsoft, Tesla, people became millionaires and billionaires and we want something like that,” he said.

Read also: How to participate in Dangote’s IPO: Step by step guide

Dangote also said the company was targeting as many as 10 million shareholders, with plans for its annual general meeting to potentially be held in a stadium rather than a hotel.

He described the refinery as a long-term vision, saying he expects it to become Africa’s biggest company within three years, backed by strong profitability.

“It’s a dream, it’s a vision. I know where it’s going. In three years I’m going to be the biggest company in Africa and with profitability,” he said.

For Dangote, the planned IPO is therefore not only a fundraising exercise but part of a broader effort to democratise ownership of the refinery and give millions of Nigerians an opportunity to participate in its future growth.