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.
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.
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.