Lagos – Nigerian billionaire Aliko Dangote has launched what is being billed as Africa’s biggest-ever initial public offering (IPO), opening a stake in his massive oil refinery to ordinary investors in a deal that could increase his personal fortune by as much as $23 billion.
According to The Guardian, Dangote’s net worth could rise from about $35 billion to nearly $60 billion if the IPO achieves its expected valuation.
The Dangote Petroleum Refinery and Petrochemicals IPO opened on Monday on the Nigerian Exchange, with the company offering 4.1 billion shares at 525 naira each. The offer is expected to raise about $1.6 billion and could reach roughly $2.1 billion if it is oversubscribed.
Dangote has described the offering as “an IPO for the people”, with investors able to buy a minimum of 10 shares for 5,250 naira, or about $4.
Reuters reported that Dangote said the objective was to “democratise wealth creation”, giving ordinary Nigerians an opportunity to participate in the refinery’s growth.
Nigeria’s fuel market
The offering values the refinery at close to $49 billion, more than double its construction cost of about $20 billion. Dangote will, however, retain a dominant 87% stake after the IPO, according to Associated Press.
The refinery, located outside Lagos, began operations in 2024 and has since reshaped Nigeria’s fuel market. It currently processes up to 700,000 barrels of crude a day and is targeting an eventual capacity of 1.4 million barrels per day.
Reuters quoted Renaissance Capital analysts as saying the refinery “has transformed Nigeria’s economy from a net importer to a net exporter of refined petroleum products”, highlighting its importance to the country’s energy sector.
The IPO has already generated strong interest among retail investors, with Reuters reporting that heavy traffic temporarily overwhelmed some digital investment platforms.
Dangote has said proceeds from the refinery will help fund further expansion as he seeks to build a broader African industrial empire. He has also outlined plans for a major energy complex in Kenya.
Secondary US listing
Speaking at an IPO signing ceremony earlier this month, Dangote said: “We, as Nigerians and Africans, must be bold and lead the change to develop our economies.”
The billionaire also plans to eventually list other companies within his conglomerate, while Reuters reported that a secondary US listing for the refinery could follow within three to four years.
The IPO is scheduled to remain open until October 13, with the refinery’s shares expected to begin trading publicly later in November.
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Compiled by Betha Madhomu
