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Dangote refinery IPO could add $23bn to Africa's richest man's wealth

The public offering of Dangote Petroleum Refinery and Petrochemicals on the Nigerian exchange could increase Aliko Dangote's net worth by $23bn.

  • The IPO is the largest initial public offering in Africa's history.
  • The offering aims to attract both institutional and retail investors, with a minimum subscription of 10 shares.
  • The share purchase process is set to conclude on 13 October.

Aliko Dangote, Africa's wealthiest individual, could see his fortune increase by $23bn (£17bn) following the public listing of his Nigerian oil refinery business. The flotation of Dangote Petroleum Refinery and Petrochemicals on the Nigerian exchange, which commenced on Monday, marks the continent's largest-ever initial public offering.

If the offering proceeds as planned, it could boost Dangote's current $35bn net worth to nearly $60bn (£44bn). The IPO has been promoted to a diverse group of investors, including young Nigerians, through banking platforms and fintech ventures, with a minimum subscription of 10 shares priced at 5,250 naira (£2.94).

The subscription period for the share purchases will run for a month, concluding on 13 October. If fully subscribed, the refinery's value is projected to reach approximately 65.22tn naira (£36.5bn).

Dangote, 69, who previously built his fortune in cement and sugar, moved into the petroleum sector, leading to Nigeria becoming a net exporter of refined fuel. The Dangote refinery, which opened in January 2024, has a capacity of 700,000 barrels a day and is expected to double this by the end of the decade.

Why this matters: The IPO represents a significant financial event for Nigeria and Africa, potentially impacting wealth creation and economic growth in the region.

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