Dangote refinery launches Africa’s biggest IPO for retail investors
Summary
Aliko Dangote, Africa’s richest man, launched an initial public offering (IPO) to sell part of his $19 billion oil refinery in Nigeria, aiming to raise $1.6 billion from everyday investors in Africa. The refinery is valued at about $49 billion, and the IPO allows people to buy small shares for as little as $4, with the refinery expected to be listed publicly in Nigeria in November.Key Facts
- The IPO is aimed at retail investors across Africa and is considered the biggest in Africa’s history.
- The Dangote refinery in Lagos is Africa’s largest and cost $19 billion to build.
- Dangote will keep 87% ownership even after the IPO.
- Each share bundle in the IPO is priced at 5,250 naira (about $4) for a minimum investment.
- The refinery began production in 2024, turning Nigeria from a net importer to an exporter of refined oil.
- Rising global oil prices after the US-Iran conflict have increased investor interest.
- Some digital platforms in Nigeria experienced heavy traffic and outages when the IPO launched.
- There are concerns about the refinery’s high valuation, which is over twice the construction cost, but company officials say the valuation is fair.
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