LAGOS — Shares in Dangote Petroleum Refinery and Petrochemicals began trading on the Nigerian Exchange on Monday. The initial public offering is marketed as the largest IPO in African history and aims to raise approximately $1.6 billion.

The share price is set at 5,250 naira per share, with a minimum subscription of 10 shares. According to moneycentral.com.ng, the IPO is priced at ₦525.00 per ordinary share, representing a primary float of 4.1 billion shares, which constitutes a 3.41% public equity stake before green shoe options. The share purchase period ends on 13 October.

Digital investment platform Bamboo reported user access difficulties due to high traffic related to the IPO. If fully subscribed, the refinery’s valuation is projected to reach 65.22 trillion naira (£36.5 billion). Aliko Dangote retains 87% ownership of the refinery following the public offering.

Aliko Dangote stated the offering could increase his net worth by $23 billion, raising it from $35 billion to nearly $60 billion. Industrialist Aliko Dangote described the offering as an "IPO for the people" intended to allow ordinary citizens to participate. "We are creating big corporations where we don't want to be the only people enjoying. We want to spread this enjoyment to the rest of Africa," Dangote said.

Banker Tony Elumelu described the IPO as "a landmark moment for Nigeria and a huge milestone for Africa". Dangote addressed concerns regarding market dominance in a press statement. "We have chosen to build here, to employ here, to produce here. Let us not use the cry of monopoly to stall growth. No one is prevented from investing," he said.

The Dangote Refinery was officially inaugurated on May 22, 2023, and began operations in January 2024. Production of Premium Motor Spirit (PMS) at the refinery began in September 2024. The refinery is the largest single-train refinery in the world.

The construction cost of the refinery was between $19 billion and $20 billion. The Dangote refinery has a current capacity of 650,000 to 700,000 barrels per day. Plans are in place to double the refinery's capacity to 1.4 million barrels per day by the end of the decade. Aliko Dangote plans to build a $17 billion energy complex in Lamu, Kenya, with a refining capacity of 700,000 barrels per day.

Why It Matters

The listing represents a significant capital mobilization event for the African continent, with the IPO marketed as the largest in its history. The transaction allows for broader public participation in a major industrial asset, with the minimum subscription set at 10 shares to facilitate retail investor access. The high traffic reported by digital platforms indicates substantial interest from individual investors in the offering.

The valuation metrics highlight the scale of the enterprise relative to its initial investment, with construction costs ranging between $19 billion and $20 billion. Analyst estimates place the post-IPO valuation at $49 billion, suggesting a substantial premium over the physical asset cost. The retention of 87% ownership by Aliko Dangote ensures continued control over the strategic direction of the refinery and its planned expansion to 1.4 million barrels per day.

Timeline

On September 7, 2024, Aliko Dangote stated, "We, as Nigerians and Africans, must be bold and lead the change to develop our economies. Only then will the others take us very seriously, only then we’ll be in a position to negotiate and walk away with terms we deserve, not those terms that are given to us." The Dangote Petroleum Refinery's IPO will close on October 13, 2026.

What's New

According to moneycentral.com.ng, the Dangote Petroleum Refinery's IPO is priced at ₦525.00 per ordinary share, representing a primary float of 4.1 billion shares (3.41% public equity stake before green shoe options). He said, "We are creating big corporations where we don't want to be the only people enjoying. We want to spread this enjoyment to the rest of Africa." According to moneycentral.com.ng, the Dangote Petroleum Refinery's IPO will close on October 13, 2026.

One analyst estimated the post-IPO valuation at $49 billion, more than twice the construction cost. The IPO aims to raise approximately $1.6 billion. Aliko Dangote is Nigerian businessperson (born 1957).

How Sources Differ

The Dangote Group operational report states the Dangote refinery has a current capacity of 650,000 to 700,000 barrels per day. The Dangote Group expansion plan states plans are in place to double the refinery's capacity to 1.4 million barrels per day by the end of the decade.