Following his groundbreaking decision to list the largest single-train refinery in the world, Africa’s richest man, Aliko Dangote, recently touted plans to pull the continent out of darkness with a plan worth over $10 billion. The chairman of the Dangote Group and majority shareholder of the Dangote Refinery, the largest oil refinery in Africa, noted during a recent interview with Al Jazeera that he plans to invest more than $10 billion in Africa’s power sector. The plan is intended to offset the power deficit the continent faces. According to the Nigerian billionaire, the lack of electricity is one of the greatest obstacles Africa faces concerning its productivity, and with the economy changes coming, this would need to be fixed.
“In the next 3 to 4 years, there will be a major transformation in Africa, and that’s why we (Dangote Group) are looking at power,” he said. Upon being asked to elaborate on his strategy for investing in the power sector, Mr. Dangote indicated that he intends to divest from certain existing business ventures to prioritize power generation initiatives. “There are one or two businesses we might cancel, like steel, and we will put the money into power.
We want to invest over $10 billion in power alone. It is something that we Africans should not really allow… over 600 million of our people to remain in darkness,” he stated. “You know, as some politicians, if they work hard, they have a plan; when you deliver power, you don’t need to go for a campaign when you’re going for the election. So power is key.
We will never, ever create growth without power. So that’s why they say, electricity is growth.” He disclosed the plan after talking about his intention to create wealth for Africans via the initial public offering of the Dangote Refinery.
Dangote Refinery’s IPO
Nigeria’s leading industrialist has officially launched the Dangote Refinery IPO in Lagos, marking a historic milestone as the first refinery to be listed on the Nigerian stock exchange. DON’T MISS THIS: N2.15 trillion is on the table for Nigerians as Dangote Refinery sounds the gong on 4.1 billion new ordinary shares. The offering comprises 4.1 billion newly issued ordinary shares offered at N525 per share, with investors required to purchase a minimum of 10 shares (N5,250). Pursuant to the terms outlined in the prospectus, the offer is slated to conclude on the 13th of October.
The formal commencement of the offering was marked by Mr. Dangote sounding the Nigerian Exchange (NGX) gong, thereby enabling prospective investors to initiate share acquisitions in the refinery. The issuance of 4.1 billion new ordinary shares at N525 each is expected to raise roughly N2.15 trillion upon full subscription. Additionally, the Financial Times rounded its figure to about $49 billion, following an equity valuation of about N63 trillion, or $47.59 billion.
Dangote is seeking to raise at least $1.6 billion from the offer, which represents about 3.3% of the refinery. While initial access to the IPO is exclusive to Nigeria, Dangote has insisted that the refinery would be open to the broader African market.
Source: Business Insider
