Nigerian billionaire Aliko Dangote has launched a major public share sale in his oil refinery, with the offering expected to raise as much as $2.1 billion.
The initial public offering, or IPO, gives investors access to roughly 3% of the Dangote Petroleum Refinery.
Dangote said the offering aims to give ordinary Nigerians an opportunity to own a stake in the refinery’s future.
The share sale will remain open for one month, according to the BBC. Investors can buy a minimum of 10 shares for about $4.
Dangote refinery IPO opens to public
The refinery began production in 2024 after more than a decade of development.
Located in the Lekki Free Zone near Lagos, the facility can process about 650,000 barrels of crude oil per day. That makes it one of the world’s largest refineries.
The refinery has also changed Nigeria’s domestic fuel market.
Despite being Africa’s largest oil producer, Nigeria previously relied heavily on imported refined fuel because of limited domestic refining capacity.
The BBC reports that the Dangote facility now supplies more than 70% of Nigeria’s energy consumption.
Investors offered a stake in refinery
The Dangote refinery IPO is attracting interest from Nigerians looking to invest relatively small amounts.
The minimum purchase of 10 shares lowers the entry point for individual investors.
However, financial experts have urged first-time investors to understand the risks.
Economist Abdulrazak Ibrahim Fagge told the BBC that share prices can fall as well as rise. He advised people against investing money they may need in the short term.
He also warned prospective investors to use authorised institutions because scammers could attempt to take advantage of public interest in the offering.
Share sale could fund refinery expansion
Money raised through the offering is intended to support plans to double the refinery’s capacity, according to the BBC.
The project was first announced in 2013. Construction began in 2017 after delays, while the Covid-19 pandemic later slowed development.
The refinery eventually began production in 2024.
Dangote built much of his fortune through cement and sugar before expanding his businesses across Africa. His Dangote Cement business is now the continent’s largest cement producer.
The refinery IPO now gives members of the public an opportunity to invest directly in one of the continent’s largest industrial projects, although returns are not guaranteed.