Dangote: Africa's Richest Man Launches Continent's Biggest Share Sale

• Nigerian billionaire Aliko Dangote launched a public share offering in his oil refinery, targeting as much as $2.1bn in Africa's biggest-ever IPO
• The offering covers roughly 3% of the Dangote refinery, which supplies over 70% of Nigeria's energy needs and ranks among the world's largest refineries
• Experts cautioned first-time investors against putting in money they cannot afford to lose for several years, and warned of potential scammers

Nigerian billionaire Aliko Dangote has launched the largest share sale in African history, offering the public a roughly 3% stake in his Lagos oil refinery in a deal that could raise up to $2.1bn (£1.6bn).

The initial public offering (IPO) opened to Nigerian investors with a minimum purchase of just 10 shares, priced at approximately $4, as Dangote stated his intention to give ordinary citizens the opportunity to benefit from the refinery's commercial success.

Bloomberg reported that he now poised to make a $23 billion leap up the list of the world’s wealthiest

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The refinery, situated in the Lekki Free Zone near Lagos, began production in 2024 after more than a decade of development. It processes 650,000 barrels of crude oil per day, making it the seventh-largest refinery in the world, and currently accounts for more than 70% of Nigeria's domestic energy supply.

Prior to its opening, Nigeria, despite being Africa's largest oil producer, relied heavily on fuel imports due to insufficient refining infrastructure at home. Proceeds from the IPO are intended to fund an expansion that would double the plant's current capacity.

The offering has stirred considerable enthusiasm among Nigerians, including Isah Salisu, who told the BBC he dipped into his savings to participate.

"My hope is that my small money will one day grow big. I don't want to miss out as many I know are also investing," he said.

Experts Urge Caution for First-Time Investors

Economy and business expert Dr Abdulrazak Ibrahim Fagge described the launch as a historic occasion but urged prospective buyers to approach the investment carefully. He noted that share prices can decline, meaning investors risk losing part of their capital.

"What prospective buyers, especially first-time buyers, should know is that they shouldn't invest all their money or money they would need in a couple of months," he told the BBC. "They should invest something they could do without for the next three, four, five years."

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Dr Fagge also flagged the risk of fraud, advising the public to transact only through officially listed institutions. "I will advise people to only deal with the institutions that have been listed," he said.

The IPO runs for one month.

Source: YEN.com.gh