Dangote launches Africa’s largest share sale, targets up to $2.1bn from refinery IPO

Nigerian entrepreneur Aliko Dangote inaugurated Africa's most substantial share offering, aiming to generate up to $2.1 billion from the sale of equity in his oil refinery. The initial public offering (IPO) pertains to approximately 3% of the Dangote refinery, allowing ordinary Nigerians to partake in the plant's prosperity. The refinery, established in 2024, ranks among the world's largest and took over a decade to complete.

Currently, it caters to over 70% of Nigeria's energy requirements, sparking enthusiasm among many Nigerians, including Isah Salisu, who invested 50,000 naira (£28; $37) from his savings, hoping for significant returns. The IPO remains open for a month, with a minimum purchase of 10 shares priced at around $4. According to Dr. Abdulrazak Ibrahim Fagge, an economy and business expert, the event holds historic significance.

However, he cautioned investors about the potential for share prices to decline, which could result in financial losses. He advised that individuals should invest only what they can afford to lose for several years. Dangote, a 67-year-old Nigerian billionaire, has an estimated net worth of $28 billion, primarily amassed through his businesses in cement, sugar, and oil across Nigeria and 15 other African nations.

His Dangote Cement is the largest cement producer in Africa. The Lagos refinery was initially proposed in 2013 with an initial estimated cost of approximately $19 billion, but construction did not commence until 2017. The project faced further delays due to the COVID-19 pandemic. The site in the Lekki Free Zone near Lagos necessitated extensive land reclamation, involving the relocation of 65 million cubic meters of sand.

The refinery boasts a processing capacity of 650,000 barrels per day, placing it as the seventh-largest in the world. The funds from the share sale are intended to facilitate a doubling of its capacity.