Nigerian billionaire Aliko Dangote has launched the initial public offering (IPO) of his oil refinery, opening ownership of the giant facility to ordinary investors in what is being billed as Africa’s largest-ever share sale.
The public offer opened on Monday, September 14, with Dangote Petroleum Refinery and Petrochemicals offering 4.1 billion new ordinary shares at ₦525 each. If fully subscribed, the sale will raise about ₦2.15 trillion ($1.6 billion).
The offer will remain open until October 13, with the company seeking to attract millions of retail investors alongside institutional investors. The minimum subscription is 10 shares, costing ₦5,250, allowing smaller investors to participate in the sale.
Dangote has described the transaction as an “IPO for the people”, positioning it as an opportunity for ordinary Nigerians and other eligible investors to acquire a stake in one of Africa’s largest industrial projects.
The proceeds will help finance the refinery’s planned expansion, which is expected to increase its crude-processing capacity from about 700,000 barrels per day to 1.4 million barrels per day by 2029.
The expansion is part of Dangote’s broader plan to turn the Lagos-based facility into the world’s largest single-train refinery.
A central feature of the IPO is its attempt to bring ordinary Nigerians into ownership of the refinery.
The company and its advisers are targeting as many as 10 million retail investors, with the low minimum subscription intended to make participation possible for smaller investors.
The offer is also being made available through digital investment channels, with the minimum subscription equivalent to roughly $4.
However, the company has warned prospective investors that buying shares carries risks. Dividends are not guaranteed and the value of the shares can rise or fall after listing.
The refinery has also advised investors to use only approved receiving agents and electronic application channels when subscribing.
Despite the public offering, Dangote will retain overwhelming control of the refinery.
The IPO represents about a 3% stake in the company, according to Reuters, leaving Dangote and his affiliated interests with the vast majority of the business.
The transaction places the refinery’s indicative post-offer valuation at roughly ₦65.2 trillion, or about $48 billion based on the exchange rate used in the offer documents.
That valuation has attracted attention from analysts because it makes the refinery one of Africa’s most highly valued companies.
The Dangote Refinery IPO will remain open until October 13, after which the shares are expected to proceed towards listing on the Nigerian Exchange.