Key takeaways:
- Dangote’s wealth could rise by $22.9 billion to $58.2 billion if the refinery IPO achieves its projected valuation.
- The IPO is expected to raise about $1.6 billion
- The listing could give Dangote fresh capital to expand the refinery and his wider African operations.
Africa’s richest man, Aliko Dangote’s, net worth could rise by as much as $22.9 billion to $58.2 billion after the initial public offering of his refinery, potentially making him one of the world’s wealthiest people.
The Dangote Petroleum Refinery and Petrochemicals Fze is set to open its IPO on Sept. 14 in Nigeria, with the offering expected to value the business at almost $50 billion, according to Bloomberg calculations.
Dangote is expected to raise about $1.6 billion from the offering, which is Africa’s biggest IPO to date, as he seeks to expand the refinery’s capacity and extend his business across the continent.
The refinery reached full capacity this year, helping Nigeria become a net exporter of refined petroleum products and shielding the country from supply disruptions linked to the war in Iran.
“We, as Nigerians and Africans, must be bold and lead the change to develop our economies,” Dangote said at an IPO signing ceremony in Lagos. “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.”
Dangote currently has a net worth of $35.3 billion, according to the Bloomberg Billionaires Index. The potential $22.9 billion increase would push him past U.S. hedge fund manager Ken Griffin and technology billionaire Eric Schmidt.
The IPO is being marketed as “an IPO for the people,” with a minimum subscription of 10 shares and Shariah-compliant status. The company’s strategy may also allow it to pay dividends in U.S. dollars.
The offering will close Oct. 13, with the refinery expected to list on the stock market soon afterward.
The IPO is part of Dangote’s wider expansion plans, which include doubling the capacity of the Nigerian refinery and building a processing plant in Kenya, extending the group’s operations from the Atlantic to the Indian Ocean.
Chidi Iwuchukwu, executive director at FirstRand Ltd.’s RMB Nigeria, said the transaction demonstrates the ability of African capital markets to support large-scale businesses.
“Large flagship listings deepen liquidity, broaden the investor base, and demonstrate that African capital markets can support world-class businesses at scale,” Iwuchukwu said. “Perhaps most importantly, they create a blueprint for other leading African companies to access the public markets, raise growth capital, and accelerate their ambitions.”
