Otedola Seeks $100m Refinery Shares as Dangote Promises Inclusive IPO
By Patience Ikpeme
Billionaire businessman and Chairman of FirstHoldCo, Femi Otedola, has publicly asked the President of Dangote Group, Aliko Dangote, to sell 100 million dollars worth of shares to him when the massive Dangote Petroleum Refinery finally lists on the stock market.
Otedola made this big request during a visit by the leadership team of FirstHoldCo and FirstBank Group to the 650,000 barrels-per-day refinery and fertilizer plant in Ibeju Lekki, Lagos. He confessed that he even sold off his shares in his electricity company, Geregu Power Plc, just to make sure he has enough cash ready to buy into the refinery’s upcoming Initial Public Offering (IPO). Otedola described the mega-refinery as a game-changer that will finally stop Africa from relying on foreign countries for fuel.
“He is a genius and one of the greatest men to emerge from Africa. What he has achieved is helping to liberate the continent from economic dependency and import reliance,” Otedola said while praising Dangote. He added that he has visited the site more than 25 times and has been begging for this slot for a long time. “I have consistently appealed for 100 million dollars worth of shares during the private placement. That informed my decision to sell my stake in Geregu so I can reinvest in the Dangote Petroleum Refinery,” he stated.
Otedola also threw his weight behind Dangote’s plan to double the refinery’s capacity to 1.4 million barrels per day in the future, saying Africa’s high demand for fuel completely justifies building more local refineries.
Responding to the request, Aliko Dangote assured everyone that the upcoming public share sale will not be for big billionaires alone. He promised that ordinary Nigerians will get a chance to buy shares so that everyday people can become part-owners of the refinery and make money from it.
“We want ordinary Africans to participate in the value being created,” Dangote said. “What companies like Amazon and Apple achieved globally in terms of wealth creation is what we seek to replicate in Africa. We want people to invest, grow with us, and share in the prosperity.”
Dangote dropped another big news during the tour, revealing plans to build a new 700,000 barrels-per-day refinery in East Africa, which will also produce chemicals like polypropylene and base oil. He said work on that new project could start in the next three to four years. He noted that this East African project was not even part of their initial “Vision 2030” plan, showing that the company is growing much faster than expected.
The Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, who was part of the delegation, said the project gives him hope for Africa. “If you see this refinery and realise that an individual conceived and delivered a project of this magnitude, already helping to stabilise energy supply across Africa, you cannot help but be inspired,” Alebiosu said, adding that bank delegates from the United Kingdom and other African countries on the trip will return home challenged to build similar big industries.
Dangote explained that his group has spent the last five years leading major sectors, including running cement factories in 11 African countries that produce 55 million tonnes of cement every year, alongside their investments in oil, chemicals, and fertilizer.
“We have built businesses that address Africa’s critical needs and create long-term value for the continent,” Dangote said. “Africa must stop exporting raw materials and importing finished goods. That amounts to exporting jobs and importing poverty.”
He concluded by revealing that investors are already fighting over the refinery’s shares, with people bringing over 2 billion dollars to buy in early through private placements. “There is significant interest in both the IPO and the private placement,” Dangote said. “While we are not able to meet all requests, the strong demand reflects investors’ confidence in the refinery and in Africa’s industrial future.”
