Dangote Targets 10 Million Investors in Africa’s Biggest IPO
The Dangote refinery in Nigeria is going public as Africa’s richest man, Aliko Dangote, is targeting 10 million retail investors in the “IPO for the people” pitch of Africa’s biggest initial public offering. The Dangote group this month launched a widespread marketing campaign to attract retail investors as part of the IPO planned to raise $1.6 billion and valuing the largest refinery in Africa…
The Dangote Group, Africa's wealthiest individual, Aliko Dangote, is set to launch the continent's largest initial public offering (IPO) in Nigeria, targeting an ambitious 10 million retail investors. The IPO aims to raise $1.6 billion and value the largest refinery in Africa at $47 billion, potentially quadrupling the number of retail shareholder accounts in Nigeria, currently at 2.7 million.
Dangote, speaking at the IPO launch, emphasized the offer's aim to allow ordinary Nigerians and Africans to participate in the refinery's future growth, with a minimum subscription of just 10 shares. The IPO subscription period concludes on October 13, with proceeds intended to fund a $14-billion plan to double the refinery's crude processing capacity from 700,000 barrels per day (bpd) to 1.4 million bpd by 2029.
The IPO's initial subscription phase has been met with overwhelming investor demand, causing digital investment platforms to experience significant traffic surges and outages. Despite this, Dangote will retain control over more than 80% of the shares, potentially increasing his wealth by 64% to approximately $58.6 billion, according to Bloomberg.
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