Aliko Dangote, Africa’s richest man, is racing to attract 10 million investors to the Dangote Petroleum Refinery’s initial public offering, with a marketing blitz that has swept across Nigeria’s commercial hub.
The offer for Dangote Petroleum Refinery and Petrochemicals FZE’s shares will close on Oct. 13. It seeks to raise $1.6 billion, mostly from retail investors across the continent. Proceeds are earmarked to help double the refinery’s capacity to 1.4 million barrels of crude a day by the first quarter of 2029, which would make it one of the largest refineries in the world.
Dangote’s target would mean a fourfold increase in retail shareholder accounts in Africa’s most-populous nation. Nigeria has 2.7 million active investors, according to the Nigerian Exchange Chief Executive Officer Jude Chiemeka.
The tycoon has even said that he wants to hold annual general meetings in stadiums packed with tens of thousands of investors.
The biggest beneficiary of the IPO might be Dangote himself. His wealth could rise 64% to $58.6 billion, according to Bloomberg calculations. He will still control more than 80% of the refinery even after the share listing.
To lure first-time investors, Dangote is pitching the sale as an “IPO for the people,” with a minimum investment of about $4 for 10 shares at 525 naira ($0.40) each.
The marketing campaign includes a cube-shaped digital billboard in the business district of Victoria Island, to Hausa-language jingles on Freedom Radio, based in the northern city of Kano, Dangote’s hometown.
The company’s fuel tankers, many plastered with branding, are adding to the push as they ply along major roads.
Demand has already strained the platforms handling the IPO. More than 50 investment intermediaries are listed in the prospectus, from fintechs to traditional banks.
Bamboo and Cowrywise were among the trading apps that crashed when the offer opened, taking hours to restore service. Banking platforms also struggled before stabilising, Dangote said Sept. 20 at the Qatar Economic Forum in New York.
Regulatory approval to sell up to 30% more shares means the company could raise as much as $2.1 billion if demand is strong. The stock is expected to list on the Nigerian Exchange in November.
The IPO values the refinery at about $49 billion, less than three years after it began operating. Built at a cost of $20 billion, the refinery has benefited from the war in Iran, which disrupted global fuel supply and resulted in surging demand for Dangote’s petroleum products, especially diesel and jet fuel.