Key facts
- Dangote refinery is launching Africa's largest IPO, targeting 10 million retail investors.
- The IPO aims to raise $1.6 billion and values the refinery at $47 billion.
- The minimum subscription is 10 shares, designed to allow ordinary Nigerians and Africans to participate.
- Investor demand overwhelmed Nigerian digital investment platforms upon launch.
- Proceeds will fund a $14 billion plan to double refinery capacity by 2029.
- Aliko Dangote will retain over 80% of shares post-IPO.
Africa's richest man, Aliko Dangote, is launching what is being pitched as "the IPO for the people" for his refinery in Nigeria, aiming to attract 10 million retail investors. The initial public offering is set to be Africa's largest, with plans to raise $1.6 billion and valuing the refinery at $47 billion.
The marketing campaign, launched this month, emphasizes accessibility with a minimum subscription of just 10 shares, offering ordinary Nigerians and Africans an opportunity to own a stake in the refinery. Dangote stated that the IPO is positioned as an opportunity for participation in the refinery's future growth, not just a capital-raising exercise.
Nigeria, Africa's most populous country with 243 million residents, currently has approximately 2.7 million active investors, according to Jude Chiemeka, CEO of the Nigerian Exchange. This IPO could potentially quadruple the number of retail shareholder accounts.
The subscription period for the IPO ends on October 13. The funds raised are earmarked for a $14 billion expansion plan aimed at doubling the refinery's crude processing capacity from its current nearly 700,000 barrels per day to 1.4 million barrels per day by 2029.
Investor demand has been robust since the subscription period opened, with digital investment platforms in Nigeria experiencing significant traffic surges. Bamboo, a major platform, reported a tenfold increase in app traffic within 30 minutes of the launch, leading to outages, according to co-founder and chief operating officer Yanmo Omorogbe.
Following the IPO, Aliko Dangote is expected to retain control of over 80% of the shares, with his personal wealth potentially increasing by 64% to as much as $58.6 billion, according to Bloomberg calculations.