KEY POINTS
- Femi Otedola sold his Geregu Power stake to position himself for investment in the Dangote Refinery IPO.
- He is seeking a $100 million stake in the refinery, which he describes as a transformative African industrial project.
- The Dangote Refinery IPO has attracted over $2 billion in demand amid plans for major expansion in refining capacity across Africa.
Nigerian billionaire businessman Femi Otedola has revealed that he sold his stake in Geregu Power Plc in order to position himself for a major investment in the proposed initial public offering, IPO, of the Dangote Petroleum Refinery.
Otedola made the disclosure during a visit by the board and management of FirstHoldCo to the refinery and the Dangote Fertiliser complex located in Ibeju-Lekki.
He described the refinery as a transformative industrial project capable of reducing Africa’s long-standing dependence on imported petroleum products.
During a tour of the facility, Otedola, who is Chairman of FirstHoldCo, revealed that he had formally requested $100 million worth of shares in the refinery’s upcoming listing.
He said his decision to exit Geregu Power was driven by his desire to reinvest in what he described as one of Africa’s most impactful industrial assets.
According to him, he has visited the refinery more than 25 times and remains convinced of its long-term economic significance.
Otedola also praised the project’s promoter, describing the refinery as a game-changing investment for Africa’s energy independence.
Dangote Promises Inclusive IPO Participation
President of the Dangote Group, Aliko Dangote, assured investors that the refinery’s IPO would be structured to allow broader public participation.
He said the goal is to enable ordinary Africans to own shares and benefit from the wealth generated by large-scale industrial projects, similar to global technology giants.
Dangote emphasised that the project is designed to create shared prosperity and deepen capital market participation across Africa.
Dangote also disclosed plans to expand refining capacity to 1.4 million barrels per day, alongside additional investments in petrochemicals, polypropylene, and base oil production.
He revealed that a proposed East African refinery with a capacity of 700,000 barrels per day is also under consideration and could begin within the next three to four years.
The industrialist noted that these projects are aimed at strengthening Africa’s refining capacity and reducing reliance on imported refined products.
According to Dangote, investor appetite for the refinery’s planned listing on the Nigerian Exchange remains exceptionally strong.
He disclosed that demand for the private placement has already exceeded $2 billion, reflecting strong confidence in the project and its long-term value.
The refinery, which has a capacity of 650,000 barrels per day, is seen as one of the largest industrial projects in Africa.
