Nigerian industrialist Aliko Dangote opened his refinery to public ownership on Monday, launching what is being billed as Africa’s largest initial public offering (IPO) for retail investors. The move aims to raise $1.6 billion, with Dangote, the continent’s wealthiest individual, describing the initiative as “for the people” to ensure broad equity ownership.
Under the offering, retail investors can purchase a minimum bundle of 10 shares for 5,250 naira (approximately $4). Despite the public offering, Dangote will retain an 87% stake in the sprawling Lagos-based facility, which remains Africa’s largest refinery.
Excitement surrounding the IPO has been fueled by the refinery’s massive scale and potential returns, particularly as global oil prices have surged following the recent US-Iran conflict. At the launch event at the Nigerian Exchange Group in Lagos, Dangote stated, “We are all going to fully share all our prosperity with the people and that is why we call it the people’s IPO.”
Although the stock is not scheduled to be publicly listed until November, the announcement triggered heavy traffic on Nigerian digital investment platforms, causing at least two systems to crash temporarily. Titi Adetoye, an operations manager in Abuja, told the Associated Press she plans to buy up to 1,000 shares, citing the refinery’s status as Africa’s largest.
The IPO marks a significant shift for Nigeria, which has long relied on foreign refining due to the decay of state-run facilities. Since commencing production in 2024, the $19 billion refinery has transformed the nation of over 210 million people from a net importer of refined oil into an exporter.
Mohammed Saidu, head of research and investment analysis at TrustBanc, called the event a “game-changing IPO for Nigeria’s markets,” predicting it could attract millions of new investors. However, the deal has drawn skepticism regarding its valuation and ownership structure.
The refinery is valued at $49 billion, more than double the cost of its construction. Joachim McEbong, a senior West Africa analyst at Control Risks, criticized the narrative, noting, “It is not something someone can classify as people-driven if you still own 87% of the refinery.”
Lagos-based researcher Abdulkabeer Tijani also expressed concerns about the share price, suggesting that at 525 naira ($0.40) per share, the stock may be overvalued. He argued that justifying the $49 billion valuation would require the refinery to generate substantial and consistent profits and cash flows.
The Dangote refinery reached its full current capacity of 650,000 barrels per day earlier this year. Officials have announced plans to double output to 1.4 million barrels per day, which would make it the world’s largest refinery, surpassing India’s Jamnagar plant. Additionally, Dangote has proposed building a new refinery in Kenya by 2030 as part of its expansion into East Africa.
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