Dangote's Net Worth Could Hit $58.2bn as Refinery Launches Africa's Biggest IPO
- Aliko Dangote's personal fortune could rise by as much as $22.9 billion following the Dangote refinery's planned public listing
- The IPO is set to raise about $1.6 billion, with 4.1 billion shares on offer at N525 each and a closing date of October 13
- Dangote holds about 84.34% of the refinery, which is expected to list on the Nigerian Exchange after the offering closes
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Aliko Dangote, Africa's richest man, could see his personal wealth climb from about $35.3 billion to as much as $58.2 billion as his refinery launches what is expected to become the largest public share offering in African history.
Bloomberg calculations show the potential $22.9 billion jump in Dangote's fortune is tied directly to the projected valuation of Dangote Petroleum Refinery and Petrochemicals FZE following its initial public offering.
Source: Getty Images
The 69-year-old Nigerian billionaire holds approximately 84.34% of the company, meaning any significant rise in the refinery's value translates into a substantial increase in his net worth.
If the projected valuation is achieved, the boost could push Dangote ahead of notable American billionaires, including hedge fund manager Ken Griffin and technology investor Eric Schmidt, on global wealth rankings.
Dangote Refinery IPO details
The refinery is offering 4.1 billion shares at N525 each, with the offering expected to raise roughly N2.15 trillion if fully subscribed, equivalent to about $1.6 billion.
The minimum subscription is set at 10 shares, opening the door to participation by individual retail investors across Nigeria.
The company is also making Sharia-compliant investment options available, and its proposed structure could allow investors to receive dividends in US dollars.
The offer closes on October 13, after which the refinery is expected to list on the Nigerian Exchange.
The Securities and Exchange Commission has already approved the offering, clearing the way for subscriptions to begin.
How the refinery got to this point
The IPO comes after months of capital-raising activity. During an earlier private placement, the refinery was valued at about $39.1 billion, and the company raised roughly $2.5 billion through that process by July.
Source: Getty Images
Reports in September indicated the company had settled on the N525-per-share price and was targeting about $1.5 billion through the public offering before the SEC gave its approval.
For Nigerian investors, the listing represents a rare opportunity to take a stake in one of the continent's largest industrial projects.
For Dangote, a successful listing could rank among the most significant single wealth events ever recorded for an African entrepreneur, with his fortune potentially approaching $60 billion.
Dangote offers Nigerians chance to own shares in refinery
Earlier, Legit.ng reported that Aliko Dangote, President of Dangote Industries Limited, said on Monday that domestic workers, traders, drivers, cooks, and managers will all be eligible to buy shares in the Dangote Petroleum Refinery and Petrochemicals when it launches its Initial Public Offering (IPO).
Dangote announced the signing ceremony for the IPO's registration documents in Lagos, calling the offer an "IPO for the people" designed to give ordinary Nigerians and other Africans a direct stake in Africa's largest oil refinery.
Source: Legit.ng
