Nigeria’s Dangote launches US$1.6b IPO, Africa’s biggest, to double oil refinery capacity

Nigerian billionaire Aliko Dangote launched Africa's biggest initial public offering (IPO) on Monday, aiming to raise US$1.6 billion (RM6.5 billion) for his oil refinery expansion. The Lagos-based Dangote Petroleum Refinery, which started operations in 2024, currently has a capacity of 700,000 barrels per day, surpassing domestic demand in Nigeria, the most populous country in Africa. The refinery has already begun exporting fuel overseas.

The ambitious plan is to double the refinery's capacity to 1.4 million barrels per day by 2028, making it the world's largest, surpassing Jamnagar in India. In a statement, Dangote described the day as "historic," emphasizing that the IPO is not merely about listing a company but creating a new opportunity for Nigeria and Africa.

Investors can purchase as few as 10 shares at 525 naira each, with the potential to raise 2.15 trillion naira. Dangote hopes this move will provide ordinary people with a chance to become shareholders in a long-term asset. The IPO, set to close on October 13, is expected to be the largest in African history. Additionally, Dangote plans to build a 700,000 barrel-per-day east African oil refinery in Lamu, Kenya, along the Kenyan coast.