Dangote gains $3.3m as refinery IPO set to open September 14

...refinery listing will test investor appetite amid renewed strength in Nigerian equities

Aliko Dangote, Africa’s richest man, added $3.3 million to his wealth on Friday as investors digested news that the long-awaited Initial Public 0ffering of his group’s refinery will open on September 14, 2026.

Data from Forbes’ real-time billionaire tracker showed Dangote’s wealth at $31.5 billion as of September 4, up from $25.6 billion at the end of last year.

Forbes updates billionaire net worth estimates frequently during trading hours, reflecting movements in the value of publicly traded holdings, while privately held assets are reviewed periodically.

The latest increase comes as Dangote Petroleum Refinery prepares for what could become one of the largest equity offerings in Nigeria’s capital-market history as well as the continent.

Dangote told investors and analysts in Botswana on Thursday that the refinery’s IPO would open within 10 to 12 days, with a source familiar with the deal putting the order book opening date at September 14.

“So our dream is that we want to make sure we double the capacity of the refinery which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” he said.

The proposed offering comprises 4.1 billion ordinary shares at N525 each, according to information from the Securities and Exchange Commission and sources cited by Reuters.

At that price, the offer could raise about N2.15 trillion, or roughly $1.5 billion, if fully subscribed.

The refinery is seeking the capital to support its planned expansion from its current operating capacity of about 700,000 barrels per day to 1.4 million barrels per day.

The IPO will also include a 15 percent over-allotment, or greenshoe, option if demand exceeds the base offer.

SEC approved the commencement of the offering and registered the refinery’s existing 120.13 billion ordinary shares, clearing the way for the company to proceed with the next stages of the listing.

The planned offer will give investors access to one of Africa’s largest industrial projects and provide a major test of appetite for large-scale Nigerian equity offerings.

Wealth gains

Dangote’s wealth has risen significantly this year, although estimates vary by methodology.

Forbes puts his current fortune at $31.5 billion, while the Bloomberg Billionaires Index puts it at $34.5 billion as of Friday.

The difference reflects the methodologies used by the two wealth trackers in valuing privately held assets and other holdings.

The industrialist’s wealth has also been influenced by movements in the shares of publicly listed companies within his business empire.

Dangote Cement, Nigeria’s second-largest listed company by market capitalisation, was unchanged at N1,034 on Friday, giving it a market value of N17.4 trillion.

Dangote Sugar Refinery, however, fell 1.39 percent to N72 with a market cap of N874.6 billion.

The broader equities market in Africa’s most populous nation has also experienced considerable volatility in recent weeks.

The market capitalisation of the Nigerian Exchange rose to N159.6 trillion on Friday, up from N157.7 trillion on Monday, while the All-Share Index gained 1.14 percent to 246,992.44.

The five-day rebound added about N1.9 trillion to market value, although the market remains below its August peak.

The country has also reclaimed its position as Africa’s best-performing stock market in dollar terms, overtaking Zimbabwe, adding to the more positive backdrop ahead of the Dangote Refinery IPO.

The shift comes after Zimbabwe overtook Nigeria in late July, following a strong run in the Zimbabwean equities market.

Nigeria’s market capitalisation had fallen from N160.42 trillion on August 10 to N154.39 trillion on August 25 after an extended period of profit-taking and portfolio repositioning.

IPO tests investor appetite

The IPO will test investor appetite for one of Africa’s largest industrial projects.

A private placement in July implied a valuation of about $40 billion, but some investors and analysts have questioned whether that valuation is high relative to listed refining peers.

Turkey’s Tupras, which has similar refining capacity spread across four sites, has a market value of about $12 billion, while New York-listed HF Sinclair, with capacity of roughly 678,000 barrels per day, is valued at about $16 billion.

Dangote has said he wants the refinery to become one of Africa’s largest companies, targeting more than $12 billion in earnings before interest, tax, depreciation and amortisation.

He also wants investors from across the continent, including Nigerian retail investors, to participate in the offering. “This is not a Nigerian listing. It’s an African listing.”

The September 14 opening will therefore provide an early indication of how much appetite African and international investors have for the refinery at its proposed valuation—and whether Nigeria’s capital market can absorb one of its biggest new equity offerings.

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