Dangote Refinery Launches Africa's Largest Share Sale
Nigerian billionaire Aliko Dangote has launched Africa's largest share sale yet with the initial public offering of his oil refinery. The IPO, dubbed a 'people's IPO', aims to raise as much as $2.1 billion for the expansion of the refinery.
Dangote, Africa's richest man, said the goal is to 'democratise wealth creation' by giving ordinary Nigerians the opportunity to participate in the success of the plant. The refinery has benefited from increased demand for its products due to supply disruptions linked to the Iran war.
However, retail investors will be paying a higher price than institutional investors who bought into a July private placement that raised $2.5 billion for a 6 percent stake. The private placement valued the company at $40 billion, whereas the IPO moves the valuation closer to $49 billion.
The refinery's CEO David Bird explained that the private placement's discount was due to certain conditions, including a lockup period, institutional investors agreed to. Dangote has stated that United Arab Emirates state oil company ADNOC is interested in investing in the plant alongside others but declined to elaborate, citing non-disclosure agreements.