Dangote Refinery opens $2.1B IPO as Nigerians rush to buy

Dangote Refinery opened a $2.1 billion initial public offering in Nigeria, offering shares at $0.40 and setting a $4 minimum subscription. The public sale precedes a planned listing in October and drew large numbers of retail investors.

The IPO would place a market value for the company above $50 billion. Two months earlier the firm completed a private placement that raised $2 billion and implied a valuation near $39.1 billion. At least one local billionaire invested $100 million in that private round.

The offering is structured to attract retail buyers with a low per-share price and a small minimum commitment. Several fast-growing brokerage platforms experienced order surges and reported outages as demand rose.

Company statements say proceeds will fund expansion of refining capacity and other projects. Planned work includes a new refinery project at Lamu and a proposed 2,650-kilometre pipeline running from Namibia through Botswana to South Africa. The refinery unit is targeting $100 billion in revenue over the next decade and management has indicated plans to list additional units of the group.

The refinery has reached roughly 700,000 barrels per day of output, making it the largest refinery in Africa and turning Nigeria into a net exporter of refined petroleum products.

The increase in refining and exports has coincided with a stronger naira. The U.S. dollar traded near 1,317 naira, the lowest level since April 2024 and more than 24% below a peak recorded in 2025.

Market participants have highlighted the risk of short-term price swings after listings. Past local IPOs have shown sharp initial gains followed by declines in the weeks after debut, and analysts say volatility is common in new public offerings.

If the combined public and private funding lifts the refinery’s valuation above $50 billion, Aliko Dangote’s paper net worth could reach roughly $60 billion, placing him among the 30 wealthiest individuals globally.

The IPO is one of the largest capital raises on the continent and represents a move by Dangote’s group to use public markets more frequently for funding after relying mainly on domestic financing.