First HoldCo’s Otedola Pledges $100m for Dangote Refinery Ahead of IPO

Chairman of First HoldCo, Femi Otedola, has told reporters he plans to invest $100 million in the Dangote Refinery as part of the refinery’s ongoing private-placement drive ahead of a planned initial public offering (IPO).

Otedola announced the intended investment on Wednesday after leading a delegation of First HoldCo executives on a tour of the refinery and associated fertiliser facilities in the Lekki Free Trade Zone. The visit included inspections of key project assets, including the refinery’s jetty.

The proposed $100 million would contribute to a $2 billion private placement that Dangote Refinery is seeking from private investors before its IPO. The refinery’s management has not yet set a firm date for the public listing, but has said it may sell up to a 10 percent stake in the flotation. Bloomberg has previously estimated that a 10 percent sale could be worth roughly $5 billion, based on reported valuation targets.

Aliko Dangote, president of the Dangote Group, has said the refinery plans a cross-border listing to attract both domestic and international investors and to broaden African participation in the company’s industrial growth. Earlier reporting from Bloomberg indicated Dangote may be pursuing an overall valuation for the refinery of up to $50 billion ahead of the IPO.

Neither the final size of the private placement nor the IPO timetable has been confirmed by the company.