Femi Otedola, the FirstHoldCo Plc Chairman said he plans to invest $100 million in the upcoming Dangote Refinery initial public offering, adding fresh high-profile support to what could become one of Nigeria’s largest listings.
Otedola made the pledge during a visit to the refinery complex in Lagos by senior Directors and staff of FirstHoldCo Plc, where Aliko Dangote said the offer will be structured to leave meaningful upside for retail investors rather than being priced aggressively.
Retail-Friendly Pricing
Dangote said the listing is intended to give smaller investors a chance to participate in the refinery’s long-term growth, comparing the opportunity to early investors in global growth names such as Apple, he told MoneyCentral.
“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.”
A recent report said the refinery owner is targeting a valuation of as much as $50 billion, but Dangote told MoneyCentral the valuation could be much lower, due to the need to accommodate retail investors. The Dangote Group plans to sell up to 10% of the refinery business in a Nigerian listing this year, which would imply a potential deal size of up to $5 billion, at the top of the range.
Expansion Funding
Proceeds from the offering would help finance a doubling of refining capacity from 650,000 barrels a day, reinforcing the refinery’s growing role in regional fuel and jet-fuel supply. The plant has also become increasingly important to Europe’s jet-fuel market amid Middle East disruptions.
The company may ultimately sell a smaller stake or stagger the equity sale depending on market conditions, and a London secondary listing remains under consideration.
Market Significance
A successful float would deepen Nigeria’s capital markets and potentially broaden local investor participation in a flagship industrial asset. It would also signal continued confidence in Dangote’s long-term strategy, even as the group prepares for a larger international capital-markets footprint.
Otedola’s proposed investment adds a notable domestic endorsement at a time when the transaction is still being shaped, and could help anchor sentiment around the listing if market pricing proves attractive.
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