The Dangote Petroleum Refinery has attracted billions of dollars in investor interest ahead of its planned share offering, with Abu Dhabi National Oil Company (ADNOC), governments and other strategic investors seeking stakes in the facility.
Dangote Group President and Chief Executive Officer, Aliko Dangote, disclosed this on Monday in Lagos while speaking with journalists after a signing event linked to the refinery’s planned share offering.
Dangote said the company had agreements with several potential investors but could not disclose details because of non-disclosure agreements.
“We have agreements with other people; it’s not only ADNOC, other people too. They are very, very interested,” he said.
He also disclosed that some governments had already invested in the refinery and were seeking to commit additional funds.
The disclosure comes as Dangote prepares to broaden ownership of the 650,000-barrel-per-day refinery through a planned share offering.
Dangote Refinery Draws $3.7bn Investor Demand
Dangote said investor appetite for the refinery had exceeded the company’s expectations, citing an earlier private offer as evidence of strong demand.
According to him, the company initially sought to raise $1bn from private investors but received subscriptions worth $3.7bn.
Dangote said the company eventually accepted about $2.5bn and returned roughly $1.2bn to investors.
He expects the upcoming offer to attract even stronger demand.
“So, even this one, I’m sure if we are to open for two days and close, the number of shares we want to sell will be all sold out,” he said.
IPO Not Driven By Middle East Crisis
Dangote also said the planned share offering was not prompted by the current Middle East crisis or other temporary geopolitical disruptions.
He said the refinery’s financial projections were based on normal market conditions before the latest Middle East crisis.
“Our own basis of calculation is based on normal days,” Dangote said.
He added that the company would not build its business model around temporary geopolitical events, including the Middle East and Russia-Ukraine conflicts.
According to him, any additional revenue generated from such disruptions should be regarded as an upside rather than the foundation of the refinery’s financial projections.
Dangote described the refinery as a long-term investment that is expected to operate for decades.
“This is a lifetime investment,” he said, adding that the facility could continue operating for the next 50, 60 or 70 years.
