Nigeria: Dangote completes the IPO of its refinery

A Nigerian oil refinery owned by Aliko Dangote, the Nigerian billionaire and Africa's richest man, closed its initial public offering on Tuesday after six weeks, having attracted investors from "120 countries", Dangote Refinery announced.

Billed as the largest capital markets operation in Africa, the operation was initially scheduled to end on October 13. It was extended by two weeks to allow more Africans to participate.

"This is a historic achievement for Africa. It shows what is possible when we believe in our continent, work together and invest in our common future," said Aliko Dangote, 69, a cement, sugar and fertilizer magnate.

He estimates that he has raised "more than three or four times" the $1.6 billion initially targeted.

For the initial public offering of his Dangote Petroleum refinery, the billionaire had offered shares within reach of all budgets at a price of $0.40 per unit, roughly the price of a Coke or a Pepsi in Lagos, Nairobi or Kinshasa.

The funds raised are intended to double the capacity of the Nigerian refinery from its current capacity of 700,000 barrels per day – already the largest on the continent – in order to make it the largest in the world.

Investors from all 54 African countries and five other continents participated in the offering, Dangote Refinery said in a statement.

"Investors' requests from 120 countries demonstrate the extraordinary international interest in our company and the confidence investors have in the future of this refinery," added Mr. Dangote.

In September, the Dangote Group also launched work on a planned $16 billion refinery on Lamu Island, Kenya, with a projected capacity of 700,000 barrels per day, with the aim of expanding its presence in other African countries.

The project is expected to be completed within 30 to 40 months.

According to a report by the Africa Finance Corporation (AFC) published in April, Africa currently imports more than 70% of its refined petroleum products.

Aliko Dangote's fortune is estimated at over $35.7 billion.