Dangote ready to dilute refinery stake further as retail demand surges

PRESIDENT of Dangote Industries Limited, Aliko Dangote, says he is willing to further reduce his stake in Dangote Petroleum Refinery if strong demand from retail investors exceeds the shares currently on offer.

Dangote said his priority was to broaden ownership of the $20 billion refinery and bring millions of ordinary investors across Africa into the company.

Speaking to ARISE News anchor Ojy Okpe shortly before the refinery’s initial public offering opened on Monday, Dangote said he was prepared to accept further dilution of his holdings to accommodate investors.

“I don’t mind to be diluted as much as possible because I want people to actually be part of this good journey,” he said.

The refinery’s public offer opened on September 14, with 4.1 billion shares priced at N525 each. The offer is expected to raise about N2.15 trillion, potentially making it Africa’s largest initial public offering.

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Dangote said the company was targeting at least 10 million shareholders, with particular emphasis on retail investors.

He explained that while his stake was initially being maintained at about 85 percent, strong demand could prompt the company to make additional shares available.

“We’ll give up more shares,” he said, adding that the company could increase allocations if demand remained high.

“We’re locked at 85 per cent, but if we now go – we can’t be that stupid to leave. Now, there’s so much demand, definitely we’ll be able to increase the number of allocations.”

Dangote said he would also seek the cooperation of other existing shareholders if more shares were required to meet investor demand.

His stated objective, he said, was to transform the offer into a broad-based ownership exercise rather than allow the refinery to remain concentrated among a few investors.

“I want to make sure that, you know, this is my main mission: to make sure that, yes, we democratise this share and give it to normal people,” he said.

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He added that the company would seek to satisfy investors who had shown sustained interest in participating in the offer.

Dangote also said retail investors would receive attention during the allocation process, although larger applications would not automatically be excluded.

“Just apply and pay,” he said. “If you are lucky, you might even get whatever that you are looking for.”

The billionaire has described the transaction as a ‘People’s IPO,’ saying ownership of one of Africa’s biggest industrial assets should extend beyond its founder and existing shareholders.

“This business does not belong to Mr Dangote; it belongs to all of us,” he said.

“That’s what we’re targeting. That’s why we’re putting it to the people.”