Nigerian billionaire Aliko Dangote on Monday, 14 July, launched the initial public offering (IPO) of his oil refinery, opening ownership of the facility to retail investors and seeking to raise funds to finance an expansion of production capacity.
The offer, considered the largest share sale in African history, makes 4.1 billion ordinary shares available at $0.39 each. The subscription period opened at 08:00 local time and closes on 13 October.
According to Bloomberg, if fully subscribed, the transaction is expected to raise approximately $1.6 billion. That figure could rise to around $2.1 billion should demand exceed supply and the company exercises its option to issue additional shares.
Built on the outskirts of Lagos, Nigeria, at an estimated cost of $20 billion, the Dangote Refinery has been transforming the country's fuel market since it began operations in 2024.
The facility supplies the majority of domestically produced petrol in the country and has benefited financially from supply disruptions linked to the conflict involving Iran, which have increased demand for aviation fuel produced by the refinery and destined for African and European markets.
Currently capable of processing 700,000 barrels of crude oil per day, the refinery aims to double capacity to 1.4 million barrels per day by 2029. According to Reuters calculations, the offering values the facility at approximately $47 billion.
Shares Open to Small Investors
Aliko Dangote, widely regarded as the wealthiest person in Africa, also intends to attract small Nigerian investors. Interested parties will be able to purchase a minimum of ten shares through digital investment platforms and financial technology companies.
"There is no segregation on who can hold these shares. We want everyone to have a stake," Dangote said at a ceremony held last week.
The businessman expects demand for the public offering to match the performance of a private placement conducted in July, which recorded demand 3.7 times higher than the number of shares on offer.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=543523
