Aliko Dangote, Africa’s wealthiest individual, is preparing to raise at least $1.6 billion through the largest initial public offering (IPO ever) on the continent by listing shares in Dangote Petroleum Refinery and Petrochemicals. The company announced on Monday that it will offer 4.1 billion shares at 250 naira (approximately $0.40) each on the Nigerian Stock Exchange, valuing the business at about $49 billion. The offering is designed to be accessible to retail investors, with a minimum purchase of 10 shares.
Dangote outlined ambitions to attract 10 million shareholders from Nigeria, other African countries, and potentially global investors. Retail buyers will receive two bonus shares if they hold their shares for a specified period, a strategy the company hopes will encourage a wider culture of investment similar to the British Gas privatization in the United Kingdom during the 1980s.
The Dangote refinery, which began operations in 2024, is Africa’s largest and one of the world’s biggest standalone refineries, processing 700,000 barrels of crude oil per day. Built over a decade on reclaimed swampland near Lagos, the $20 billion facility marked a major shift for Nigeria, transforming the country from a net importer to an exporter of refined petroleum products.
David Bird, former Shell executive and current head of Dangote’s refinery and petrochemicals division, defended the firm’s $49 billion valuation. He described the company as being on a “growth journey,” with plans to double refining capacity by 2030 and expand production into related chemical precursors, including those used in detergents. Bird noted that the valuation draws from a $2.5 billion private placement closed in July, which was oversubscribed, and dismissed concerns that recent high profit margins—boosted by disruptions in global oil supply due to the Iran war—had artificially inflated the company’s worth.
Dangote emphasized that the refinery’s value and prospects are based on long-term, sustainable margins rather than short-term market disruptions. “We don’t base our business on crisis,” he said. “Whatever we have over and above that is icing on the cake.”
The IPO is scheduled to open on September 14, with a prospectus expected to be published at that time. Proceeds from the listing will be directed toward the development of “tank farms” to facilitate distribution of refined products across Africa, starting with a facility planned in Namibia. Dangote is also planning a separate refinery project in Kenya, also with a capacity of 700,000 barrels per day, aimed at serving East Africa; this project will fall under the broader holding company rather than the Lagos-based refinery business.
Although originally intended as a pan-African offering with simultaneous listings on multiple African stock exchanges, regulatory challenges have limited the IPO to Nigeria for now. However, Bird noted that investors from other African nations could still participate through institutional investors. Kasimu Garba Kurfi, chief executive of APT Securities and Funds in Lagos, highlighted the inclusive nature of the offering, stating that the low minimum investment threshold allows participation regardless of an investor’s financial means.