Nigerian billionaire Aliko Dangote on Monday launched what has been described as Africa’s largest share sale yet, with the initial public offering (IPO) of his oil refinery officially opening the plant to retail investors and raising fresh funds for its expansion.
The offer, comprising 4.1 billion ordinary shares priced at N525 each, opened at 8:00am local time (0700 GMT) and is scheduled to close on October 13.
If fully subscribed, the offer is expected to raise N2.15 trillion, about $1.6 billion, though that figure could rise to roughly $2.1 billion should the offer be oversubscribed and the company opt to exercise a greenshoe option to issue additional shares.
Chris Chijioke, a Lagos-based business owner, told Reuters he plans to buy 2,000 shares, citing the refinery’s scale and Dangote’s track record as key motivators. However, he expressed reservations about the pricing, warning that any delay in the refinery’s planned capacity expansion could leave the offer price difficult to justify. “I personally think it is overvalued,” he said.
Built at a cost of about $20 billion on the outskirts of Lagos, the refinery has significantly reshaped Nigeria’s fuel market since commencing operations in 2024. It currently supplies the bulk of Nigeria’s domestically produced gasoline and has recorded financial gains from supply disruptions linked to the Iran war, which boosted demand for Dangote’s jet fuel across Africa and Europe.
Africa’s richest man has actively marketed the offer to everyday Nigerians, with retail investors able to participate by purchasing as few as 10 shares through fintech and other digital investment platforms.
Ibrahim Abubakar, a journalist, said he intends to acquire about 2,850 shares, describing the refinery as “too big to fail.”
The refinery currently processes 700,000 barrels of crude daily, with plans to scale up production to 1.4 million barrels by 2029. Based on Reuters calculations, the offer values the plant at approximately $47 billion.
Dangote has expressed confidence that interest in the IPO will mirror that of a private placement conducted in July, which was oversubscribed by 3.7 times.
Behind The Offer: How Dangote Refinery Became Nigeria’s Energy Game-Changer
Since its launch in 2024, the Dangote Refinery has steadily positioned itself as a cornerstone of Nigeria’s energy sector, easing the country’s long-standing reliance on imported refined petroleum products.
Its scale, one of the largest single-train refineries globally, has drawn both local and international attention, with the ongoing Dangote Refinery IPO representing a major milestone in opening up the asset to public ownership.
Analysts say the refinery’s growing role in global fuel supply chains, amplified by geopolitical disruptions such as the Iran war, has further strengthened investor confidence, even as some remain cautious about valuation and expansion timelines.
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