Dangote Opens 4.1 Billion Share IPO in Africa's Biggest Share Sale
By Aboki Forex —
Aliko Dangote on Monday launched Africa's largest share sale yet, an initial public offering of his oil refinery that opens ownership of the plant to retail investors and raises money for its expansion.
The offer of 4.1 billion ordinary shares at 525 naira each opened at 0800 local time (0700 GMT) and will close on October 13.
What the sale could raise
If fully subscribed, the IPO would raise 2.15 trillion naira ($1.6 billion). That figure could rise to roughly $2.1 billion if the offer is oversubscribed and the company decides to use a greenshoe option to issue more shares.
The offer values the plant at about $47 billion, according to Reuters calculations. Dangote has said he expects interest in the IPO to mirror a private placement in July that was 3.7 times oversubscribed.
Open to small investors
Africa's richest man has marketed the offer to ordinary Nigerians, who can take part by buying as few as 10 shares through fintech and other digital investment platforms.
"There is no segregation on who can own these shares. We want everyone ... to own a share," Dangote said at a signing ceremony last week.
The plant behind the offer
Built at a cost of about $20 billion on the outskirts of Lagos, the refinery has reshaped Nigeria's fuel market since it started operations in 2024. It supplies most of Nigeria's domestically produced gasoline.
The refinery processes 700,000 barrels of crude a day and hopes to raise that to 1.4 million barrels by 2029. It has also benefited financially from supply disruptions linked to the Iran war, which increased demand for Dangote's jet fuel across Africa and in Europe.
All dollar figures in the offer come against an exchange rate of 1,326.38 naira to the dollar.
What it means for Nigerian investors
For the first time, ordinary Nigerians can hold a direct stake in the country's biggest private refinery, and the entry ticket is small by the standards of the local market. The sale is the largest ever seen on the continent, and it runs until October 13.