Episode Details

Nigerian industrialist Aliko Dangote opened his refinery to public ownership, seeking to raise $1.6 billion from retail investors across Africa in the continent’s biggest initial public offering, or IPO. Dangote, Africa’s richest man, dubbed the IPO “for the people” and said he wants everyone to be able to own a share. Retail investors can buy shares in the sprawling Lagos-based refinery for 5,250 naira ($4) per share, with a minimum purchase of 10 shares. Dangote retains an 87% stake in the refinery, Africa’s largest. The refinery’s scale and potential returns, especially as global oil prices have risen following the U.S.-Iran war, have generated excitement among retail investors. Nigeria relied for decades on foreign refining of its oil because of decrepit state-run refineries, many of which operated below capacity or remained stagnant for years because of poor maintenance. But when the $19 billion refinery began production in 2024, it transformed the energy-rich country of more than 210 million people from an importer of refined oil into an exporter. The IPO has raised questions about Dangote retaining significant ownership and the refinery’s valuation after the offering. At $49 billion, the valuation is more than twice what it cost to build the refinery. Refinery officials have denied that its valuation is inflated. The Dangote refinery reached its full capacity of 650,000 barrels per day earlier this year. Dangote announced plans last year to increase capacity to 1.4 million barrels per day, a move officials say would make it the world’s largest refinery, surpassing India’s Jamnagar plant. This article was provided by The Associated Press.