Lagos (AFP) – Nigerian billionaire Aliko Dangote on Monday launched what is slated as Africa's biggest initial public offering (IPO), which aims to raise $1.6 billion (€1.3 billion) to expand his mega oil refinery to become the world's largest.
The Lagos-based refinery, which began operations in 2024, has a capacity of 700,000 barrels per day, exceeding domestic demand in Nigeria, Africa's most populous country.
It began exporting its fuel abroad a few months ago.
The Dangote Petroleum Refinery aims to raise funds to double its capacity to 1.4 million barrels a day by 2028, which would make it the world's largest refinery, surpassing Jamnagar in India.
Describing it as an "historic day", Dangote said in a statement that the IPO was "not simply about listing a company. It is about listing a new possibility for Nigeria, and for Africa".
Investors can buy as few as 10 shares at 525 naira each, potentially raising 2.15 trillion naira ($1.6 billion) in a move Dangote hopes will give ordinary people a chance for a stake in a long-term asset.
He has said the offering, which closes 13 October, will be the biggest IPO in African history and has encouraged participation by small investors, including people on lower incomes.
Located outside Nigeria's economic capital Lagos, the refinery began operations in 2024. It is one of the world's largest single-train refineries and has become a major part of Dangote's business empire, which spans cement, sugar to fertiliser production.
Dangote, whose net worth is estimated at $31.5 billion by Forbes magazine, said the firm is aiming to reduce "Africa's reliance on imported refined products" and strengthen the "continent's energy security".
Nigeria is Africa's leading crude producer.
Dangote has announced plans for the business to expand its footprint into Ethiopia, Tanzania and Namibia.
He also plans to build a 700,000 barrel-per-day east African oil refinery in Lamu, on the Kenyan coast.
Africa currently imports more than 70 percent of its refined fuel and around $230 billion worth of essential goods, including food, plastics, steel and fertiliser each year, Africa Finance Corporation (AFC) said in a report in April.
Nigeria is facing both a long economic slide – 63 percent of Nigerians live below the poverty line, according to the IMF – and myriad security threats, from jihadists, gangs, separatists, and farmers and herders clashing over land.
These issues will be the focus for many as the country gears up for general elections in January.
(AFP)
