Dangote Says Lagos Refinery IPO Draws 'Enormous' Investor Demand

Aliko Dangote said on Tuesday, September 29, that the initial public offering of shares in the Dangote Lagos refinery has attracted “enormous” investor demand. The Nigerian billionaire, Africa’s richest man, spoke to reporters in Nairobi as the offer heads toward its October 13 close.

Dangote launched the $1.6 billion IPO earlier this month to fund a doubling of the refinery’s capacity. The deal is being marketed as a “people’s IPO” and would be Africa’s largest.

Demand and timing

“Demand is there, enormous demand. In fact, I didn’t know the depth of our capital markets until now, really, because we have never tested it,” Dangote said. He did not provide specific numbers for the offer.

The IPO is scheduled to close on October 13. It seeks $1.6 billion to expand the refinery’s capacity.

East African refinery plan

Construction of a 700,000 barrel-per-day refinery for the East African market is due to be launched on Wednesday. The Dangote Group will hold 70% of the project, while regional governments will hold the remainder.

Dangote said governments investing in the project, including Kenya and Rwanda, would be allowed to spread payments for their equity stakes over four years.

The offer’s progress will be watched as a test of appetite for large Nigerian listings and for the Dangote Group’s expansion plans. Dangote said the demand has shown him the depth of the capital markets, even though he did not give subscription figures.