Dangote Prices Africa's Biggest IPO at $47 Billion

Aliko Dangote initiated Africa's largest share sale on Monday, selling 4.1 billion shares of his Nigerian oil refinery at 525 naira per share. The offering, which remains open until October 13, could generate between $1.6 billion and $2.1 billion if all shares are purchased, or potentially more if the company utilizes its greenshoe option.

The refinery, capable of processing 700,000 barrels of crude oil daily, has been valued at approximately $47 billion. Its profitability has been enhanced by disruptions in Iran's oil supply, which have driven up demand for its jet fuel across Africa and Europe. In the first half of 2026, the refinery posted an after-tax profit of $1.82 billion, a significant turnaround from a $476 million loss the previous year.

Dangote plans to utilize the funds raised to expand the refinery by 2029, doubling its capacity to 1.4 million barrels per day. The $20 billion project, located outside Lagos, currently provides the majority of Nigeria's domestic gasoline. Dangote has targeted individual Nigerians for the sale, allowing purchases as small as 10 shares via fintech platforms.

While some, like Lagos businessman Chris Chijioke, see the offer as potentially overvalued, others like journalist Ibrahim Abubakar are confident in the refinery's future success. UAE's ADNOC has shown interest in investing, though specific terms have not been disclosed. Dangote is also exploring a $17 billion refinery project in Kenya's Lamu Island, which could offer equity stakes to regional governments, including Kenya's 10 percent stake valued at $500 million.

Dangote anticipates IPO demand will be similar to a recent private placement that saw 3.7 times oversubscription.