Nigerian billionaire Aliko Dangote launches Africa’s biggest IPO at $49B valuation

Nigerian billionaire Aliko Dangote on Monday launched an initial public offering for his oil refinery, opening ownership of the $20 billion facility to retail investors in what is set to become Africa’s largest share sale. The offer gives Nigerians a chance to buy into one of the country’s biggest private industrial projects as Dangote raises money to support the refinery’s expansion.

The offer opened at 8 a.m. local time (0700 GMT) and will close on Oct. 13. Dangote is offering 4.1 billion ordinary shares at 525 naira each. If fully subscribed, the sale would raise about 2.15 trillion naira, or $1.6 billion. The proceeds could rise to about $2.1 billion if the offer is oversubscribed and the company exercises its greenshoe option to issue additional shares.

The shares represent a 3.3 percent stake in the 700,000-barrel-per-day refinery, which is being offered to the public through Dangote Group. The listing marks a significant change for a business empire whose major operating companies have largely remained privately held.

Dangote Refinery opens wealth building access

Dangote, 69, is Africa’s richest person and ranks 63rd among the world’s wealthiest people, with a net worth of $35 billion, according to the Bloomberg Billionaires Index. He controls Dangote Industries Limited, one of Africa’s largest industrial groups, with businesses spanning cement, sugar, salt, fertiliser, petrochemicals, power, logistics, shipping and oil refining.

The refinery, built on the outskirts of Lagos at a reported cost of about $20 billion, began operations in 2024 and has become a major source of locally produced fuel. It produces gasoline, diesel, jet fuel, liquefied petroleum gas and petrochemical feedstocks, including polypropylene.

Dangote has also positioned the share sale as an opportunity for ordinary Nigerians to participate in the refinery’s ownership. Investors can buy as few as 10 shares through fintech platforms and other digital investment channels, lowering the entry point for retail investors.

The refinery has also benefited from changes in global fuel markets. Supply disruptions linked to the Iran war have increased demand for Dangote’s jet fuel in African and European markets, adding to the refinery’s commercial importance as it expands production and reaches more customers.

Import-substitution model drives Dangote African growth

The IPO comes as Dangote Group continues to build businesses around local production. Its strategy has generally focused on replacing imports with goods made in Nigeria while creating capacity to serve markets elsewhere in Africa and beyond.

Cement was the group’s first major example of that approach. Dangote Cement has installed production capacity of 51.8 million metric tons a year across Africa, including 35.3 million tons in Nigeria. Its operations extend across Cameroon, the Republic of Congo, Ivory Coast, Ethiopia, Ghana, Senegal, Sierra Leone, South Africa, Tanzania and Zambia.

Dangote Cement aims to increase total production capacity to 80 million metric tons a year by 2030. The refinery is the group’s newest major industrial investment and extends that strategy from cement into fuel, fertiliser and petrochemicals.

A nearby fertiliser plant has annual capacity of 3 million tons of urea and ammonia. It supplies the Nigerian market and exports to countries including Brazil, India, Mexico and the United States.

Dangote Refinery IPO balances infrastructure debt

The group’s consumer businesses include sugar, salt, seasonings and other food products. Its industrial operations are supported by marine terminals, storage facilities, pipelines and power plants, giving the group infrastructure across much of its supply chain.

That model has required large investments in factories, quarries, pipelines, logistics and power infrastructure. It has also left the group exposed to the financial demands that come with building and operating large industrial projects, including construction delays and debt-servicing costs.

The refinery IPO therefore represents more than a capital raising exercise. It brings part of Dangote’s largest new industrial project into public ownership while giving the conglomerate another source of capital as it develops its refining, petrochemical and related businesses.

For retail investors, the offer provides a new way to gain exposure to one of Nigeria’s most closely watched industrial assets. For Dangote Group, the sale opens the door to public shareholders while advancing a business strategy built around producing more of the goods Nigeria has historically imported.