Aliko Dangote, president and chief executive of Dangote Industries Limited, has announced that all companies operated by the Dangote Group will eventually be opened to public ownership. Speaking in Nairobi at the "Dangote Petroleum Refinery IPO High Level Investor Engagement" organised by the Nairobi Securities Exchange, Dangote stated that the ongoing Dangote Petroleum Refinery public offer is not about raising cash but about democratising wealth for Africans.
The Dangote Petroleum Refinery public offer is part of a larger plan to create millions of African shareholders who will benefit from dividends and capital appreciation as the underlying businesses grow. Dangote disclosed that a new shipping business being developed by the Group would eventually be taken to the capital market, while its expanding fertiliser operations would also be opened to public participation.
Dangote declared that when the Lamu refinery matures for public ownership, it should be listed in Kenya rather than automatically taken to the Nigerian market. He said, "If tomorrow we are going to have the refinery here in Lamu to be listed, we don’t have to list it in Nigeria. We shouldn’t list it in Nigeria. We should list it here." This proposal reinforced calls for deeper integration of African capital markets.
The chairman of Kenya's Capital Markets Authority, Ugas Mohammed, disclosed that Kenyan investors had already demonstrated significant appetite for the Dangote Petroleum Refinery IPO, with the regulator receiving enquiries daily since the offer opened on September 14. He said the interest showed growing demand among Kenyan and East African investors for opportunities beyond their domestic markets.
Mohammed further stated that Kenya's CMA, Nigeria's Securities and Exchange Commission, and other African regulators had signed a Memorandum of Understanding to facilitate greater cross-border investment and trading. This move aims to enable savings generated in one part of the continent to finance productive assets elsewhere.
The chairman of the NSE, Tom Muluwa, described the refinery offer as evidence that Africa could move from the margins of the global economy to competing on a global scale. The engagement was attended by various investors and stakeholders, who showed interest in the Dangote Petroleum Refinery IPO.
Dangote's plan to list the Lamu refinery in Kenya is part of a larger strategy to democratise wealth making and create a pan-African economy. The Dangote Group is preparing to progressively release additional equity in its businesses as investor demand grows, with the goal of creating a large and diverse shareholder base across the continent.
Key points
- Aliko Dangote plans to list the Lamu refinery in Kenya.
- The Dangote Group aims to create millions of African shareholders.
- African regulators have signed a Memorandum of Understanding to facilitate cross-border investment and trading.
