President of Dangote Group, Aliko Dangote, has disclosed that the Dangote Refinery is targeting a private placement valued at about $2 billion ahead of its planned initial public offering (IPO).
The announcement came on Wednesday during a visit to the refinery by Femi Otedola, Chairman of First HoldCo Group, who also revealed plans to invest $100 million in the refinery project.
Otedola led senior executives of First HoldCo on a tour of the Dangote refinery and fertiliser plants located within the Lekki Free Trade Zone in Lagos.
The delegation also inspected major project facilities, including the refinery’s jetty designed to accommodate large vessels.
According to Otedola, his planned investment forms part of the refinery’s ongoing private placement exercise aimed at attracting private investors ahead of its expected public listing.
“On a personal note, I have appealed to him (Aliko Dangote). I’ve been here with him 25 times, so my compensation is he’s going to allocate to me shares worth $100 million in the private placement,” Otedola said.
He added that the decision influenced his move to sell his stake in Geregu Power Plc in preparation for participation in the Dangote refinery IPO.
The refinery’s planned IPO is expected later this year, although an official date has yet to be announced.
Reports previously indicated that Dangote is targeting a valuation of up to $50 billion for the refinery business ahead of the listing.
The billionaire businessman had earlier stated that up to 10 percent of the refinery’s shares could be offered to investors during the IPO.
Dangote also said the company was considering a cross-border listing strategy to encourage wider African participation in financing industrialisation across the continent.
