Africa’s richest man launches continent’s biggest share sale

Nigerian businessman Aliko Dangote has initiated Africa's most significant share sale, offering shares in his oil refinery to individual investors. The Initial Public Offering (IPO) could generate up to $2.1 billion. The sale represents approximately 3% of the Dangote refinery, which commenced operations in 2024. Dangote aims to allow ordinary Nigerians to benefit from the refinery's prosperity.

The refinery, one of the world's largest, now meets over 70% of Nigeria's energy demand. Many Nigerians, including Isah Salisu, have shown enthusiasm for investing, even if it means using savings. The IPO is open for a month, with a minimum investment of 10 shares, costing around $4. However, experts warn that share prices may decline, potentially leading to financial losses.

Dr. Abdulrazak Ibrahim Fagge, an economy and business analyst, advises investors to only allocate funds they can afford to lose for several years. Dangote, the 67-year-old founder of Dangote Cement, one of Africa's largest cement producers, is Africa's wealthiest individual with a net worth of approximately $28 billion. The Lekki Free Zone-based refinery, first announced in 2013, took over a decade to complete due to numerous delays, including the impact of the Covid-19 pandemic.

The facility boasts a processing capacity of 650,000 barrels daily, making it the seventh-largest in the world. The funds raised from the share sale will be utilized to double the refinery's capacity.