Small and retail investors will be given priority in the allocation of shares under the ongoing Initial Public Offering of Dangote Petroleum Refinery if the offer is oversubscribed, President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, has said.
Dangote said the allocation principle was part of efforts to ensure that the refinery’s ownership would be widely distributed rather than dominated by large investors.
The billionaire businessman said the IPO was conceived as a “People’s IPO” designed to give millions of Nigerians and other African investors an opportunity to acquire an ownership stake in the refinery and participate in its future growth.
He said the company was targeting at least 10 million investors, describing the proposed shareholder base as one of the largest in Africa.
“This is more than a capital-raising exercise. It is a historic opportunity to deepen financial inclusion, democratise wealth creation and enable ordinary Nigerians to become co-owners of a world-class industrial enterprise,” Dangote said.
According to him, the offer is open to different categories of investors, but the company would ensure that retail investors are not disadvantaged by large subscriptions if demand exceeds the number of shares available.
“If the offer is oversubscribed, retail and small investors will receive priority consideration. We are determined to ensure that ordinary Nigerians are not crowded out by large subscriptions,” he said.
Dangote said the broader objective was to create millions of shareholders who would benefit from the performance and expansion of the refinery.
“Our objective is not merely to raise capital, but to create millions of shareholders who can participate in the growth and prosperity of the Dangote Refinery. We want as many people as possible to own a stake in this national asset,” he added.
He said wider participation in the refinery’s ownership was consistent with his belief that economic growth should translate into broader opportunities for citizens to own productive assets.
“We believe prosperity should be shared by the many, not concentrated in the hands of a few. This refinery was built to transform Nigeria’s energy landscape, and we want millions of Nigerians to be part owners of that transformation,” Dangote said.
He said the offer could also support the emergence of a broader ownership economy by enabling different groups, including civil servants, artisans, traders, professionals, cooperative societies, pension contributors, young entrepreneurs and Nigerians living abroad, to participate in the capital market.
Dangote further said technology had been deployed to make participation easier, with BVN-enabled subscription channels intended to reduce some of the barriers that have historically restricted retail participation in Nigeria’s capital market.
He expressed optimism that the IPO would deepen the capital market and demonstrate how large industrial enterprises could facilitate wider participation in wealth creation.
“Our ambition is clear. We want to build a shareholder base of at least 10 million investors and create one of the most widely owned companies in Africa. That is the essence of the People’s IPO,” he said.
According to Dangote, the initiative is ultimately intended to give a broad cross-section of Nigerians the opportunity to participate in the value being created by the refinery.
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