Investors participating in the Dangote Petroleum Refinery and Petrochemicals IPO could have an extra reason to hold on to their shares, as Aliko Dangote has announced a proposed loyalty incentive for long-term shareholders. Under the proposal, investors who retain their shares for one year after the company is listed on the Nigerian Exchange Limited (NGX) would receive one additional share for every 10 shares held.

Dangote, President and Chief Executive Officer of Dangote Industries Limited, said the initiative is designed to encourage long-term ownership and give more Nigerians and international investors an opportunity to benefit from the refinery’s growth. With the IPO price set at N525 per share, the offer is positioned as part of a broader plan to widen ownership of one of Africa’s major industrial projects.

According to Dangote, raising fresh capital is not the primary reason for opening the refinery to the public. He explained that the Group had already secured the funding required for its investments, including through a private placement that attracted about $2.5 billion in demand, compared with an initial target of roughly $1 billion. He said the public offering is instead intended to allow ordinary investors, including teachers, civil servants and Nigerians in the diaspora, to participate in the refinery’s future value.

The Dangote Group is also looking beyond the refinery’s current operations, with plans to expand its refining and petrochemical businesses. Dangote said the Group has about $46 billion in projects planned through 2030, while the refinery could eventually see its capacity expanded significantly, potentially reaching up to 2.5 million barrels per day. The Group is also considering an international listing within the next three to four years as it seeks to expand its global investor base.

For investors watching market news in Nigeria, the proposed one-for-10 bonus share arrangement adds another dimension to the Dangote Refinery IPO. If implemented as announced, shareholders who maintain their investment for the required one-year period would receive additional shares, reinforcing the company’s push for broad-based ownership. Dangote described the broader vision as creating a structure through which millions of people could participate in the refinery’s long-term growth and value creation.

source: newtelegraphs