Aliko Dangote, Africa’s wealthiest individual, is preparing to raise at least $1.6 billion by offering shares in his Dangote Petroleum Refinery and Petrochemicals business, aiming to complete the continent’s largest initial public offering (IPO) to date. The company plans to list 4.1 billion shares at 525 naira each (approximately $0.40), assigning a valuation of about $49 billion to the refinery.

The IPO is set to launch on the Nigerian Stock Exchange on September 14, with a minimum purchase requirement of 10 shares to encourage retail investor participation across Africa. Dangote emphasized a broad shareholder base, stating the company aims to attract as many as 10 million investors from across the continent and beyond. Retail investors who hold their shares for the required duration will receive two additional free shares as an incentive, a move designed to cultivate a culture of investment akin to the British Gas privatisation in the UK during the 1980s.

The Dangote refinery, which began commercial operations in 2024, has become Africa’s largest oil refinery with a capacity of 700,000 barrels per day, transforming Nigeria from a major importer of refined petroleum products to a net exporter. The facility was constructed on reclaimed land near Lagos over a decade, despite initial skepticism about the project’s scale and viability.

David Bird, former Shell executive and head of Dangote’s refinery and petrochemicals division, defended the company’s $49 billion valuation, attributing it to a recent oversubscribed private placement that raised $2.5 billion in July. Bird emphasized that the valuation reflects a longer-term growth outlook rather than short-term profits. While the refinery has benefited from unusually high diesel and jet fuel margins amid the supply disruptions caused by the conflict involving Iran, Bird stressed that the company bases its business forecasts on normalized market cycles, with any additional profits seen as a bonus.

Funds raised through the IPO will be allocated toward expanding infrastructure across Africa, including the construction of storage tank farms to facilitate distribution of refined products. The first such facility is planned for Namibia. Additionally, Dangote plans a second 700,000-barrel-per-day refinery in Kenya to serve East African markets. This project will be managed separately from the Lagos refinery under the group’s holding company.

Although the flotation was intended as a pan-African offering, regulatory challenges have so far limited simultaneous listings on multiple African exchanges. Bird noted that investors from other African nations would still be able to participate indirectly via institutional investors.

Kasimu Garba Kurfi, CEO of Nigerian brokerage APT Securities and Funds, highlighted the affordability of the IPO, noting that the low minimum investment threshold of 10 shares makes it accessible to a wide range of potential investors, regardless of income level.