* Promises to accommodate small bidders
Blessing Ibunge Blessing in Port Harcourt
President of Dangote Industries Limited, Aliko Dangote, has unveiled plans to broaden the capability of the Dangote Petroleum Refinery to 1.4 million barrels per day by early 2029, whereas assuring small traders that they’d be accommodated within the firm’s ongoing Initial Public Offering (IPO).
Dangote, who disclosed this on Monday through the last IPO roadshow, themed ‘Back to Where It All Began,’ held in Port Harcourt, mentioned the deliberate growth would place the refinery among the many world’s largest refining complexes and strengthen Nigeria’s industrial capability.
Speaking just about on the occasion organised by Financial Derivatives Company for Dangote Petroleum Refinery, he mentioned the refinery’s present capability stood at 500,000 barrels per day, with additional growth anticipated to lift output considerably.
“But what we have today, we are at 500,000 barrels per day. And by the beginning of 2029, we will be at 1.4 million barrels per day,” he mentioned.
Dangote added that the growth could be accompanied by vital development in petrochemical manufacturing, together with a projected 2.5 million tonnes of polyolefins and a 400,000-metric-tonne linear alkylbenzene plant, which he described as the most important of its sort in Africa.
He additionally highlighted plans for a 1,900-kilometre pipeline supposed to increase the refinery’s attain into jap and southern Africa, underscoring his ambition to construct an industrial platform serving markets past Nigeria.
“We’re not even started,” he mentioned, signalling additional growth alternatives.
Addressing considerations concerning the reported oversubscription of the IPO and the restricted variety of shares obtainable to the general public, Dangote assured retail traders that smaller bidders wouldn’t be shut out.
“Yes, definitely. Most of the smaller people who are bidding for 50,000 shares and below will definitely be sure that we accommodate all of them,” he mentioned, drawing applause from contributors.
He additionally defended the supply value of N525 per share, describing it as engaging in view of the refinery’s monetary efficiency and development prospects.
“I think it’s an extremely very, very good price,” Dangote mentioned, including that the corporate anticipated its full-year efficiency to exceed earlier projections.
He expressed confidence that traders would profit from the refinery’s growth, declaring: “This is the right shares to buy. This is the shares of the future.”
Speaking on the occasion, Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, described the IPO as a chance for Nigerians to maneuver past being shoppers of the nation’s industrial output to turning into traders who may gain advantage financially from its development.
He mentioned the itemizing might considerably broaden the Nigerian capital market, appeal to extra funding and deepen public participation in strategic industrial belongings.
Rewane additionally highlighted the refinery’s broader financial significance, together with its potential to stimulate industrial growth, enhance productiveness and create funding alternatives throughout the vitality worth chain.
Similarly, economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, mentioned the refinery might strengthen Nigeria’s macroeconomic fundamentals by decreasing dependence on imported petroleum merchandise, easing strain on overseas change and supporting industrialisation.
He famous that its affect prolonged past gasoline manufacturing to petrochemicals, plastics, packaging, logistics and different associated industries.
Yusuf additionally mentioned the IPO had generated unprecedented public curiosity within the capital market, creating alternatives for broader funding participation and wealth creation.
In his remarks, Chief Paul Usoro (SAN) urged Nigerians, notably residents of the oil-producing South-south area, to take part within the share supply, arguing that communities supplying the nation’s crude oil must also have a stake in its refining and downstream worth chain.
He recalled the lengthy queues that when characterised gasoline distribution in Nigeria, saying funding in home refining might assist maintain enhancements in petroleum provide, whereas giving shareholders a chance to take part within the trade’s development.
Usoro disclosed that he had invested within the firm, urging potential traders to think about the refinery’s potential financial and business advantages.
