Nigerian billionaire Aliko Dangote on Monday launched Africa’s largest share sale yet with the initial public offering of his oil refinery, opening up ownership of the plant to\u00a0retail investors\u00a0and raising money for its\u00a0expansion.<\/p>\n
The offer of 4.1 \u200bbillion ordinary shares at 525 naira each opened at 0800 local time (0700 GMT) and will \u200bclose on October 13.<\/p>\n
If fully subscribed, it would raise\u00a02.15 trillion naira ($1.6 billion), though \u2060that could rise to roughly $2.1 billion if the offer is oversubscribed and the company decides to \u200buse a greenshoe option to issue more shares.<\/p>\n
Chris Chijioke, a business owner based in the country’s \u200bcommercial capital Lagos, said he would buy 2,000 shares as the size of the refinery and Dangote’s track record as a businessman made a strong case.<\/p>\n
He expressed concern, however, about the price of the share sale, saying that \u200bif plans to double the refinery’s capacity get delayed then the offer price would not be \u200bjustified.<\/p>\n
“I personally think it is overvalued,” he told Reuters.<\/p>\n
REFINERY HAS BENEFITED FROM IRAN WAR<\/strong><\/p>\n Built at a cost of \u200cabout $20 billion \u2060on the outskirts of Lagos, the refinery has reshaped Nigeria’s fuel market since it started operations in 2024.<\/p>\n It supplies most of Nigeria’s domestically produced gasoline and has benefited financially from supply disruptions linked to\u00a0the Iran war, which increased demand for Dangote’s\u00a0jet fuel across Africa and in Europe.<\/p>\n Africa’s richest man \u200bhas marketed the offer \u200bto ordinary Nigerians, who \u2060can participate by buying as few as 10 shares through fintech and other digital investment platforms.<\/p>\n Ibrahim Abubakar, a journalist, said he would take up roughly \u200b2,850 shares because he believed the refinery was “too big to fail”.<\/p>\n It processes \u200b700,000 barrels \u2060of crude a day and hopes to increase that to 1.4 million barrels by 2029. The offer values the plant at about $47 billion, according to Reuters calculations.<\/p>\n Dangote has said he expects interest in the \u2060IPO to \u200bmirror a private placement in July that was 3.7 times \u200boversubscribed.<\/p>\n","protected":false},"excerpt":{"rendered":" Nigerian billionaire Aliko Dangote on Monday launched Africa’s largest share sale yet with the initial public offering of his oil refinery, opening up ownership of the plant to\u00a0retail investors\u00a0and raising money for its\u00a0expansion. The offer of 4.1 \u200bbillion ordinary shares at 525 naira each opened at 0800 local time (0700 GMT) and will \u200bclose on […]<\/p>\n","protected":false},"author":6,"featured_media":16783,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":3,"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_featured":"1","show_post_meta":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_comment_section":"1","number_popup_post":"1","show_post_related":"1","show_inline_post_related":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","source_name":"Reuters","subtitle":""},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2831,2362,27],"tags":[],"class_list":["post-22013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-featured","category-west-africa"],"_links":{"self":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/22013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/comments?post=22013"}],"version-history":[{"count":1,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/22013\/revisions"}],"predecessor-version":[{"id":22014,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/22013\/revisions\/22014"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media\/16783"}],"wp:attachment":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media?parent=22013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/categories?post=22013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/tags?post=22013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}