Africa’s richest man aiming to make $23bn from continent’s biggest-ever IPO

Africa's wealthiest individual, Aliko Dangote, is set to generate an additional $23 billion to his current net worth of $35 billion following the successful public offering of his Nigerian oil refinery business. The flotation of Dangote Petroleum Refinery and Petrochemicals is expected to be the largest initial public offering in Africa's history.

Dangote has framed the IPO as "an IPO for the people," aiming to attract both institutional and retail investors with a minimum investment of just 10 shares at a cost of 5,250 naira ($2.94). The subscription period for shares spans one month, concluding on October 13th.

The IPO's success could push Dangote's net worth to nearly $60 billion, a substantial increase of two-thirds for Africa's richest person. If the IPO is fully subscribed, the refinery's value is projected to reach approximately 65.22 trillion naira ($36.5 billion). This substantial growth marks a significant victory for Dangote, who has financed several successful presidential campaigns in Nigeria and has been granted near-monopoly status in his chosen sectors.

In response to accusations of political influence, Dangote defended his actions, stating that his focus is on building, employing, and producing within Nigeria. He emphasized that no one is barred from investing.

Aliko Dangote, 69, built his fortune in cement and sugar over the past four decades, starting his company in the late 1970s with a loan from his maternal grandfather, a member of a prominent West African family. His recent foray into the petroleum industry resulted in Nigeria becoming a net exporter of refined fuel for the first time.

The $20 billion Dangote refinery, located near Lagos, began operations in January 2024, replacing the country's reliance on crude exports and fuel imports, which required substantial subsidies to support domestic fuel prices.

Dangote aims to leverage the profits from his Lagos oil refinery to foster continental growth and reduce Africa's dependence on foreign goods. He envisions expanding his influence to construct a $100 billion industrial empire centered on heavy manufacturing and regional infrastructure. This vision includes a $17 billion energy complex in Kenya's Lamu island town, which will feature an oil-refining capacity of 700,000 barrels per day.

Dangote hopes this initiative will enhance energy security in the region. At the IPO signing ceremony held on September 7th in Lagos, Dangote declared the offering a "landmark moment for Nigeria and a huge milestone for Africa." Fellow Nigerian billionaire Tony Elumelu concurred, praising the IPO as a pivotal moment for Nigeria and a major stride for the entire continent.