Aliko Dangote and his financial advisers signed registration documents for the initial public offering of his refinery business as Africa’s richest man takes a key step toward launching the continent’s biggest share sale to date.
Dangote Petroleum Refinery and Petrochemicals FZE seeks to raise $1.6 billion from investors through an offer of 4.1 billion shares at 525 naira ($0.40), according to the signed prospectus. The IPO, which values the company at $49 billion, is scheduled to open Sept. 14 and close Oct. 13.
“The refinery means too much to our continent,” Chairman Dangote said at the signing of the documents that will transition the firm to a public company. “We can’t industrialize if we don’t have energy security.”
Dangote earlier appointed Stanbic IBTC Capital Ltd., Vetiva Advisory Services Ltd. and FirstCap Ltd. to advise on the deal.
The minimum subscription is 10 shares; the listing is expected in November, Vetiva Capital Management Chief Executive Officer Chuka Eseka said.
The offer targets 10 million retail investors, FirstCap CEO Ukandu Eme Ukandu said.
The IPO follows a private placement that raised $2.5 billion, with subscription at 3.7 times more than the initial target and participation by investors including Africa Finance Corp. and African Export-Import Bank.
Proceeds from the private placement and public offering will help the refinery fund a doubling of capacity to 1.4 million barrels a day by 2028, from about 700,000 barrels. The plant, which took 11 years and $20 billion to build, has transformed Nigeria from a net importer of petroleum to an exporter, helping to ease Iran war-related supply shocks in several countries.
Dangote is a familiar name with African investors and has an empire that spans publicly traded companies in sugar production and building materials.
Nigeria’s equities gauge has climbed 73% in dollar terms this year, making it the best performer globally after South Korea’s.
