Nigeria: Dangote Refinery Sets Minimum Subscription for $1.6 Billion IPO

Aliko Dangote, Africa's wealthiest individual and head of the 700,000-barrel-per-day Dangote Refinery, presided over the signing of documents for the refinery's IPO. The $1.6 billion public equity sale, touted as Africa's largest, is slated to commence the following week. The IPO, valued at nearly $50 billion, aims to raise N2.2 trillion from investors, including the average Nigerian citizen.

Minimum subscription for the offer is 10 shares, priced at N5,250 per unit. The refinery's shares are open to retail investors, with no restrictions on who can own them. Vetiva Advisory Services Limited is managing the capital raise, with the IPO running from September 14 to October 13. The refinery's capacity is planned to be doubled to 1.4 million bpd, potentially increasing the Nigerian Exchange's market capitalization by over one-third.

The Dangote Refinery also aims to list its shares on the Johannesburg Stock Exchange and possibly in Egypt, Kenya, Ghana, and Rwanda. The IPO is expected to capitalize on Nigeria's growing foreign portfolio capital and potentially serve as a template for other large Nigerian companies considering public listings.