Key facts
- Aliko Dangote's net worth could increase by $23 billion to nearly $60 billion if the IPO is successful.
- Dangote Petroleum Refinery and Petrochemicals is undertaking Nigeria's largest-ever initial public offering.
- The minimum subscription for shares is 10 shares at 5,250 naira each.
- The IPO process is scheduled to conclude on October 13.
- The refinery's value is projected to reach 65.22 trillion naira if fully subscribed.
- The refinery has a current capacity of 700,000 barrels a day, with plans to double it by the end of the decade.
Aliko Dangote, recognized as Africa's richest person, is poised to significantly increase his fortune through the public listing of Dangote Petroleum Refinery and Petrochemicals. This initial public offering (IPO) is set to be the largest in the continent's history, with the potential to add $23 billion to Dangote's existing $35 billion net worth, bringing it close to $60 billion. The offering, which began on Monday, is designed to attract a wide range of investors, including institutional and retail participants, with a low entry point of just 10 shares costing 5,250 naira. The subscription period will conclude on October 13.
Dangote has positioned the IPO as a means for wealth creation and economic growth in Nigeria, particularly targeting younger investors through fintech platforms. If the offering is fully subscribed, the refinery is expected to be valued at approximately 65.22 trillion naira (£36.5 billion). This move represents a significant achievement for Dangote, who has historically benefited from political influence and near-monopolies in key sectors within Nigeria.
Previously, Dangote built his wealth in cement and sugar industries. His recent venture into petroleum, with the $20 billion refinery launched in January 2024 on the outskirts of Lagos, has enabled Nigeria to become a net exporter of refined fuel for the first time. Before the refinery's operation, Nigeria relied on exporting crude oil and importing refined products, incurring substantial costs for fuel subsidies. The Dangote refinery currently processes 700,000 barrels per day and plans to double this capacity by the end of the decade. Global supply disruptions, partly due to geopolitical events, have also benefited the refinery's operations this year.
Dangote intends to leverage profits from the refinery to foster continental growth and reduce Africa's dependence on foreign goods, envisioning a $100 billion industrial empire. A key component of this vision is a planned $17 billion energy complex in Lamu, Kenya, with a similar refining capacity, aimed at enhancing regional energy security. At a recent IPO signing ceremony in Lagos on September 7, Dangote emphasized the need for Africans to lead their economic development. Following the ceremony, fellow Nigerian billionaire Tony Elumelu lauded the IPO as a significant milestone for Nigeria and Africa.