Aliko Dangote, Africa’s richest man, is set for a potential increase of roughly $23 billion in his personal wealth as his oil refinery launches an initial public offering that could value the business at nearly $50 billion.
The offer, which opens on Monday, is expected to raise about $1.6 billion for Dangote Petroleum Refinery and Petrochemicals FZE and could lift the billionaire’s net worth toward $60 billion, according to Bloomberg. The 69-year-old industrialist currently holds an estimated $35 billion based on Bloomberg’s latest billionaire index at the time of this report.
Valuation and Ownership
Bloomberg calculations suggest Dangote’s net worth could rise from about $35.3 billion to as much as $58.2 billion if the refinery achieves the projected valuation. That would add roughly $22.9 billion to his fortune and could move him higher among the world’s wealthiest people, potentially placing him ahead of US hedge fund manager Ken Griffin and technology billionaire Eric Schmidt.
The increase is driven by his majority stake of about 84.34 per cent in the company. The IPO is expected to become Africa’s largest and will serve as a major test of Nigeria’s capital markets and the capacity of local investors to take part in one of the continent’s biggest industrial assets.
Dangote has described the offer as an “IPO for the people.” The minimum subscription is 10 shares. The company is also providing Sharia-compliant investment options and a structure that could allow investors to receive dividends in US dollars. The offer is scheduled to close on 13 October, with a listing on the Nigerian Exchange expected soon afterwards.
Path to the Public Offer
The refinery has been preparing for a public listing for several months, first raising capital from private investors. Nairametrics earlier reported that the business was valued at $39.1 billion as it sought additional funds through a private placement. By July it had raised $2.5 billion through that process to support expansion plans.
Plans became clearer in September, when reports indicated shares would be priced at N525 each and that the offer would target about $1.5 billion, with the order book expected to open on 14 September. The Securities and Exchange Commission has approved the IPO, which involves 4.1 billion shares and could raise about N2.15 trillion if fully subscribed.
Strategic Scale and Ambition
Located on the outskirts of Lagos, the refinery is central to Dangote Group’s plan to expand beyond Nigeria. It currently processes 700,000 barrels of crude oil a day, making it one of the world’s largest single-train facilities. The group intends to double that capacity as part of a further $14.3 billion investment programme.
The company has also outlined a broader Africa-focused industrial strategy, including a proposed 700,000-barrel-a-day refinery in Kenya that would extend its presence into East Africa. The Lagos plant reached full capacity this year and has helped Nigeria reduce reliance on imported refined petroleum products, positioning the country as a net exporter of refined fuel.
For Dangote, the IPO marks the culmination of more than a decade of investment. He has spent about $19 billion developing the refinery, including supporting infrastructure such as roads, a port and quays needed to move heavy equipment to the site.
