Dangote Group is preparing for what its Chief Executive Officer, Aliko Dangote, says will become the biggest initial public offering (IPO) in Africa’s history, as the company seeks to raise funds to expand its massive Lagos refinery.
In an interview with CNN’s Eleni Giokos, Dangote said the group plans to offer more than 4 billion ordinary shares, describing the proposed share sale as a major opportunity for Africans to own a stake in the refinery.
“This is going to be the biggest IPO ever in the history of Africa,” Dangote said, expressing confidence that the offering would attract strong investor demand.
“I hope definitely to be massively oversubscribed. The demand is very, very overwhelming,” he added.
Expansion of Lagos refinery
Proceeds from the IPO are expected to help finance an expansion of the Dangote refinery in Lagos, which would increase its processing capacity to 1.4 million barrels per day.
If achieved, the expanded facility could potentially become the world’s largest operating refinery, further strengthening Nigeria’s position in the global energy market.
Dangote said the expansion would also enable the refinery to become a major supplier of refined petroleum products to international markets.
“When we get there, we will be now major suppliers of jet fuel to the world market, not only Europe,” he said.
He also highlighted the refinery’s expected position in the global diesel market, saying the company would become one of the biggest suppliers of gas oil, or diesel, to the world market.
Opportunity for African investors
Dangote said the decision to list the refinery-related business on the Nigerian stock exchange was partly driven by a desire to give Africans an opportunity to participate directly in the project.
“Every African has an opportunity to have a stake in this great refinery,” he said.
The proposed IPO could therefore represent a significant moment for Nigeria’s capital market, while giving local and international investors an opportunity to participate in the expansion of one of Africa’s most significant industrial projects.
As the refinery prepares for further expansion, the planned share sale is expected to attract considerable attention from investors across Africa and beyond.
