Dangote Petroleum Refinery and Petrochemicals FZE opens subscriptions on Monday for an initial public offering to raise US$1.6 billion and fund a path to becoming the world’s largest refinery. “We are the largest refinery in Africa — and soon to be the largest refinery by 2028 in world history,” Aliko Dangote told a press conference in Nigeria this week, in remarks carried on the group’s YouTube channel. Dangote chairs the refinery’s board and founded Dangote Industries Limited. He is Africa’s wealthiest man, though Elon Musk, who in June became the first person in history to reach a net worth of US$1 trillion, was born and raised in South Africa before moving to Canada and then the United States. The Nigeria-based plant would need to more than double its output to take the title, currently held by Reliance Industries’ Jamnagar complex in India at about 1.24 million barrels a day. Dangote’s refinery reached its nameplate capacity of 650,000 barrels a day in February and has tested at 700,000. Announced in 2013 and inaugurated in May 2023, the refinery now supplies most of Nigeria’s petrol, though imports have not stopped. Before it opened, Nigeria pumped crude for export and reimported the refined product. The offer comprises 4.1 billion ordinary shares at 525 Nigerian dollars (US$0.40) each, a sale of about 2.15 trillion Nigerian dollars, or US$1.6 billion, that would rank as the largest initial public offering in African history. Proceeds are earmarked for expanding the refinery to 1.4 million barrels a day. “We are trying to ensure the majority of the population have a stake in the refinery,” Dangote said. He described the listing as a milestone for the company, for Nigerians and for Africans. Nigeria’s entire equity market was worth roughly US$116 billion in early August. At the offer price, the refinery alone would enter at close to one-third of that, making it the exchange’s single largest listed company on its first day of trading. Vetiva Advisory Services is the lead issuing house and lead adviser, with Stanbic IBTC Capital and FirstCap as joint managers. “We must be bold and lead the change to develop our economies and continent, and by doing so will provide opportunity and prosperity for our people. Only then will others take us seriously,” Dangote said. “The refinery means so much for our continent. Today is a day of collective pride for all of us.” Nigeria’s Securities and Exchange Commission approved the offer in a letter to Vetiva, signed by Abdulkadir Abbas, director of the commission’s Securities and Investment Services Department. The regulator also registered the company’s existing 120.13 billion ordinary shares. The offer closes on October 13, with trading on the Nigerian Exchange expected in November. business@gleanejrm.com