Nigerian billionaire Aliko Dangote has launched an initial public offering for his oil refinery, targeting up to USD 2.1 billion in what is expected to become Africa’s largest share sale.

The offering will sell about a 3% stake in the Dangote refinery and is primarily targeting retail investors, allowing ordinary Nigerians to participate in the company’s ownership.

If fully subscribed, the offering on the Nigerian Exchange is expected to raise about USD 1.6 billion. The amount could increase to approximately USD 2.1 billion if demand exceeds available shares and the company exercises an option to issue additional stock.

Investors can participate by purchasing as few as 10 shares through fintech and other digital investment platforms, requiring a minimum investment of approximately USD 4.

The IPO values the refinery at nearly USD 49 billion, compared with USD 40 billion during a private placement in July that raised USD 2.5 billion from institutional investors for a 6% stake.

Built at a cost of approximately USD 20 billion outside Lagos, the refinery began operations in 2024 and currently processes about 700,000 barrels of crude oil per day. The company plans to double capacity to 1.4 million barrels daily by 2029.

The scale of the offering also highlights the growing depth of African capital markets and the increasing ability of major African companies to raise significant financing through domestic exchanges.

The development comes as countries including Ethiopia are building comparatively younger capital markets, with the Ethiopian Securities Exchange representing an early stage in efforts to expand domestic investment and securities financing.

Dangote also plans to list other companies in his conglomerate and is considering a secondary U.S. listing for the refinery within three to four years.

Source: Reuters