Africa's richest man eyes continent's largest IPO

Africa's richest man will next week launch what he says will be the continent's biggest initial public offering, seeking to raise $1.6 billion from his Nigerian oil refinery while giving ordinary people a chance to buy in.

Here are some key things to know about the share sale and Aliko Dangote's refinery, which operates on the outskirts of Lagos.

The IPO, which goes live September 14, aims to attract up to 10 million shareholders across Africa.

Dangote Petroleum Refinery & Petrochemicals will offer investors the chance to buy as few as 10 shares at 525 naira each, potentially raising 2.15 trillion naira ($1.6 billion).

Speaking at an event in Lagos on Monday to sign off on the paperwork, Dangote said raising money was only part of a bigger plan.

His broader goal is to give ordinary Nigerians and Africans a chance to own a stake in what would be the continent's biggest industrial project.

"It's not really about raising funds. It's about getting our own Africans generally to be part and parcel of this refinery," Dangote said.

He wants the investment to become a long-term asset for ordinary people, he said, comparing his ambitions to US giant Amazon, whose early shareholders saw the value of their investments grow dramatically.

"We are creating big corporations where we don't want to be the only people enjoying. We want to spread this enjoyment to the rest of Africa," he said.

Dangote estimates the offering, which closes October 13, will be the biggest IPO in African history.

Located outside Nigeria's economic capital Lagos, the refinery began operations in 2024. It is one of the world's largest single-train refineries and has become a major part of Dangote's business empire, which spans cement, sugar to fertiliser production.

Part of the money raised will fund a further expansion of the refinery as Dangote seeks to increase its capacity and strengthen its position as a major supplier of refined petroleum products. Nigeria is Africa's leading crude producer.

With the planned expansion, the refinery would become the world's largest by 2028.

Dangote has also announced plans for the business to expand its footprint into Ethiopia, Kenya, Tanzania and Namibia.

The IPO is tailored to encourage participation by small investors, including people on lower incomes.

David Bird, CEO of Dangote Petroleum Refinery & Petrochemicals, told AFP the company wanted retail investors to play a central role in the offering.

"It's very much an IPO for the people," Bird said.

"We want to drive retail participation so that all Nigerians, no matter their income or status, can be a part of the wealth creation that will come from this immense industrial project and business that is not only currently operating at scale, but is growing."

The refinery is "the world's most modern, youngest, most energy-efficient, most automated, most data-rich refinery", said Bird.

The company is also expanding in other African countries, including tank farms in Namibia and a pipeline that will supply underserved inland markets.

"This is truly a pan-African energy platform," Bird said.

Analyst Bismark Rewane told AFP that instead of spending money on sports betting on overseas football clubs, young people could find investing in the Dangote offer "far more rewarding".

"I see this as democratisation of the economy as against democratisation of politics because so far democratisation of politics has not been a fantastic success," said Rewane.