Aliko Dangote, Africa’s richest man, is preparing to list about 10% of his oil refining company on multiple African stock exchanges. This move aims to raise funds for the next phase of expansion across his industrial empire.
The listing will involve Dangote Petroleum Refinery and Petrochemicals FZE, with Dangote confirming that shareholders will receive dividends in U.S. dollars after the planned initial public offering (IPO).
He shared this update during a brief interview in Washington on Thursday.
IPO Preparations Underway
Dangote revealed that advisers, including Stanbic IBTC Capital, Vetiva Advisory Services. And FirstCap, have already engaged to facilitate the listing. The IPO expected to be one of Africa’s largest in the energy sector.
“We will list as much as possible, maybe 10% or so,” Dangote said, though he did not disclose the company’s valuation.
The refinery, after the IPO, expected to pay dividends in dollars, providing an attractive incentive for investors.
Part of a $40 Billion Expansion Plan
The share sale is part of a broader $40 billion expansion strategy that spans oil refining, fertilizer production, and other industrial investments over the next five years.
Key highlights of the expansion plan include:
- Fertilizer Production: Capacity will be quadrupled.
- Oil Refining: Refining capacity is set to more than double.
- New Projects: Plans include potash, phosphate, and copper refining facilities in resource-rich countries like the Democratic Republic of Congo and Zambia.
Dangote emphasized that the group is focusing on sectors where Africa faces significant infrastructure and investment gaps.
Refinery Operations Scaling Up
The announcement comes as Dangote’s 650,000-barrels-per-day refinery reaches full operational capacity after overcoming initial ramp-up challenges. The refinery is now a key supplier of diesel and jet fuel to markets in Africa and Europe. Further solidifying its presence in global fuel markets as African stock exchanges.
