Wetin to know about Africa biggest IPO as Dangote refinery target two trillion naira

Di Dangote Refinery, wey be di biggest refinery for Africa don open dia Initial Public Offering (IPO) dis Monday morning for di Nigeria Stock Exchange.

Dis, according to many business sabi pipo, na one of di biggest business event for di entire Africa.

Di company bin make di announcement earlier dis september and since den experts say millions of pipo across di African continent and even beyond don dey wait ti try to be part of dis refinery wey get capacity to process about 700,000 barrels of crude oil evri day.

Here na ansa to some of di questions wey many pipo dey ask about dis:

Wetin be IPO and how e dey work?

IPO na acronym for Initial Public Offering. Na di process wey company dey use offer di public opportunity to buy shares for dia company.

If pesin successfuly buy di share, e means say di pesin don bicom part owner of di company bicos you don bicom shareholder and you fit benefit from dividends from di company if dem make profit.

Also, if di company dey make losses, e also mean say you wey your moni dey di company as shareholder, dey also folo to share for di loss.

Dividends for shareholders no dey guaranteed. E depend on plenty factors like how di company perform financically for di year, and also di decisions of di Board.

To buy share for any company na risk. You fit lose some moni or even all di moni wey you invest, but you fit also make good gain, depending on how di company perform.

Africa richest man, Aliko Dangote, who be di chairman and founder of di Dangote Refinery tok say even though Nigerians fit buy di shares wit naira, na actually dollarised investment and dia dividends go dey paid for dollar, wey mean say di investment dey protected from local inflation and currency fluctuations.

However, sabi pipo say e dey important to study any company well and read dia IPO prospectus bifor you invest your moni inside.

How much Dangote Refinery dey look for and wetin e wan use am do?

Di Dangote Refinery dey hope to raise about 1.6 billion dollars for dis IPO, and di period wey pipo get to invest na just one month. Di IPO go close by 13 October.

Na total of 4.1 billion shares dey available for dis offer, wit one share going for di price of 525 naira, hoping to get at least 10 million investors on board.

Di company bin don open a private placement to raise funds for July dis year, wia according to di Chairman and Founder, Aliko Dangote, dem raise more dan di 2.5 billion dollars wey dem need to expand di refinery.

Oga Dangote say di private placement option bin dey oversubscribed, sotee dem refund some pipo dia money, and according to am, di 2.5 billion dollars dey enuf for dem for di expansion project wey dem wan do.

"Coming bak now to do IPO, na to make sure say we invite di public so dat dem fit also get part of dis benefits," Dangote tok on Monday.

Dangote say e dey confident say di refinery go bicom di biggest company for Africa, not just Nigeria.

Di refinery tok say dia ambition na to bicom outrightly di biggest crude oil refining plant for anywia in di world, and dem hope say by 2030, dem go don double dia current daily capacity of 700,000 barrels of crude oil to 1.4 million bpd.

Wetin dis mean for Nigeria?

Plenty sabi pipo wey don dey chook mouth about dis Dangote Refinery IPO opening tok say na beta tin not just for di Nigeria capital market but for di kontri economy as a whole.

Emomotimi Agama, di Dircetor General of di Securities and Exchange Commission for Nigeria, tok say na sometin wey dey make di kontri very proud.

"As at today, di market capitalisation don move from 55 trillion (naira) wen we assume office to ova 160 trillion, and fixed income securities of ova 56 trillion, and sometin clearly to be proud of and happy wit," Agama tok for one TV interview.

For di ordinary Nigerian, sabi pipo say e fit offer opportunity for pipo, for di first time, to fit benefit financially and directly from di oil wealth of dia kontri.

For di past, di Nigeria govment bin dey subsidise di price of petrol as a way of making pipo to enjoy say dia kontri na major crude oil producer, but di Bola Tinubu administration stop di subsidy regime in 2023, as e tok say corruption full am and di pipo wey suppose benefit from am no dey benefit much.

Since den, di price of crude products for Nigeria don more dan triple, wit petrol selling for betwin 1,450 and 1,550 for different parts of di kontri.

Sabi pipo say by making di share price of di Dangote refinery very afforadable, many pipo now fit bicom shareholders and folo enjoy di benefit of di only working refinery for Nigeria at di moment.

"Every day, Nigerians dey use products wey depend on refined petroleum. Wetin make dis IPO unique be say e give pipo di opportunity not only to consume but also to participate as owners for di industrial system wey dey power economic life," Dangote tok during di announcement of di IPO.

Bismarck Rewane, ogbonge economic sabi pesin for Nigeria tok say, dis offer go also boost di investment culture for Nigeria.

Rewane tok say di company wit di largest shareholders for di world na Samsung wit about four million shareholders, soe if di Dangote Refinery achieve dia target of 10 million subscribers, e go make am di company wit di biggest shareholders for di World.

"E dey significant say e (Dangote) dey nuture di culture of investing especially among pipo wey dey for di bottom of di pyramid for Nigeria, who bifor now dey spend almost 20 to 30 percent of dia income on gambling and on betting," Rewane tok for one TV interview.

"Di Dangote refinery dey offer sure bet of getting revenue and dividends, dan di 0.0001 probability say you fit predict di correct outcome of a football or wrestling match.

"Di difference betwin gambling and investment be say, for one you dey invest based on parameteres wey dey known while for di oda one you just dey gamble and taking a chance."

Wetin go hapun next?

Di IPO go run for one month and close by 13 October 2026, however, di Dangote Refinery tok say dem dey also hope to list for international markets in di next two or three years.

Dia chairman Aliko Dangote tok say dem dey aim for di United States of America, but also for oda African kontris.

Dangote tok say by dat next three years, di Dangote Refinery go hopefully dey produce about 10 percent of di total crude oil refining capacity for di United States.