Dangote launches Africa’s biggest IPO

LAGOS, Nigeria | September 14, 2026 — Nigerian billionaire Aliko Dangote has launched what is being described as Africa’s largest initial public offering, offering a stake in his oil refinery to the general public in a move aimed at raising up to $2.1 billion to fund the expansion of the facility.

Dangote is offering roughly 3% of the refinery through the Nigerian stock market and has branded the sale a “people’s IPO”, saying it will give ordinary Nigerians an opportunity to participate in the growth of one of the continent’s biggest industrial projects.

Dangote said on Monday that the objective of the share sale was to “democratise wealth creation”.

The refinery has seen increased demand for its products following supply disruptions linked to the Iran war, which have helped the company expand sales of jet fuel to customers in Western Europe.

However, retail investors are being offered the shares at a higher valuation than the institutional investors who participated in a private placement in July.

That private placement raised $2.5 billion in exchange for a 6% stake in the refinery, valuing the company at about $40 billion.

The latest public offering places the refinery’s valuation closer to $49 billion, according to the company’s prospectus.

Refinery CEO David Bird told Reuters that the discount offered to institutional investors during the private placement reflected conditions attached to their investment, including an agreed lockup period.

Dangote has previously said that the United Arab Emirates state oil company ADNOC was interested in investing in the refinery alongside other potential investors. He has not provided further details, citing non disclosure agreements.

The Africa Finance Corporation, which was among the institutional investors in the private placement, said other participants included sovereign wealth funds and development finance institutions.

Low entry point for investors

If fully subscribed, the IPO on Nigeria’s main stock exchange is expected to raise 2.15 trillion naira, equivalent to about $1.6 billion.

The amount could increase to around $2.1 billion if the offer is oversubscribed and the company exercises a greenshoe option to issue additional shares.

The offering has been structured to allow relatively small investors to participate. Nigerians can buy as few as 10 shares through fintech companies and other digital investment platforms, requiring a minimum investment of about $4.

That entry point is lower than several previous major Nigerian share offerings.

Telecommunications company MTN Nigeria’s 2021 offer to retail investors had a minimum investment requirement of about $8 based on the exchange rate at the time.

Interest in the Dangote refinery IPO has already generated heavy traffic on investment platforms.

Nigerian investment app Bamboo said it was experiencing significantly higher traffic than usual as investors attempted to participate in the offering, with some users reporting difficulties logging into the platform.

Chris Chijioke, a business owner in Lagos, told Reuters that he planned to purchase 2,000 shares despite concerns about the offering price.

He said Dangote’s track record gave him sufficient confidence to invest.

Speaking at an event hosted by the Nigerian stock exchange on Monday, Dangote said he eventually intended to list every company within his business conglomerate, one of Africa’s largest industrial groups.

The conglomerate has major operations across sectors including cement, sugar and salt.

Dangote also said the refinery could receive a secondary listing in the United States within three to four years.

Refinery reshapes Nigeria’s fuel market

The Dangote refinery was built at a cost of about $20 billion on the outskirts of Lagos and began operations in 2024.

The facility has significantly changed Nigeria’s fuel market and has a current processing capacity of 700,000 barrels of crude oil per day.

Its owners plan to increase capacity to 1.4 million barrels per day by 2029.

Renaissance Capital Africa analysts said the refinery “has transformed Nigeria’s economy from a net importer to a net exporter of refined petroleum products, making it a systemically important institution for the nation,” according to a research note.

The refinery’s planned stock market debut comes as disruptions in global fuel supplies linked to the US Iran war contribute to expectations surrounding the company’s valuation.

Charles Robertson, head of macro strategy at FIM Partners, described the offering as a major event for Nigeria and a symbol of greater African economic self reliance.

“Nigerian equities have boomed on the back of retail interest since 2024 and there’s evident excitement among domestic investors,” he added.

The offering is being launched at an exchange rate of $1 to 1,326.3800 naira.