Dangote refinery opens Africa's biggest IPO to retail investors
Nigerian billionaire Aliko Dangote has launched a public share offering for his oil refinery, aiming to raise $1.6 billion from retail investors in what is being called Africa's largest IPO. The move has drawn both enthusiasm and criticism over the company's valuation.
Africa's richest man, Aliko Dangote, launched a public offering of shares in his oil refinery on Monday at the Nigerian Exchange Group in Lagos, calling it a "people's IPO." The goal is to raise $1.6 billion from retail investors across the continent, marking Africa's largest initial public offering to date. The minimum investment is a bundle of ten shares priced at 5,250 naira, roughly $4.
Dangote will retain 87% ownership of the refinery after the offering, which remains Africa's largest. Interest has been fueled partly by rising global oil prices following the US-Iran war, raising expectations of strong returns. Although the stock will not be officially listed until November, demand was so high on launch day that at least two Nigerian digital investment platforms briefly went offline.
From importer to exporter
For decades, Nigeria depended on foreign refining because its own state-run refineries were poorly maintained and often ran below capacity. When the $19 billion Dangote refinery began production in 2024, it turned the country of more than 210 million people from an importer of refined oil into an exporter. Industry analysts have called the IPO a potential turning point for Nigeria's capital markets, predicting millions of new investors will join.
Valuation concerns
The refinery's IPO valuation stands at $49 billion — more than double what it cost to build. Analysts have questioned whether the offering can truly be called "people-driven" given Dangote's continued 87% stake, while some investors warn the current share price sets a high bar, requiring sustained, substantial profits to justify the valuation. Refinery officials have rejected claims that the valuation is inflated.
The refinery reached its full capacity of 650,000 barrels per day earlier this year. Dangote has announced plans to expand capacity to 1.4 million barrels per day, which would make it the world's largest refinery, and has also proposed building a new refinery in Kenya by 2030 as part of an East Africa expansion.
