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Aliko Dangote's oil refinery drew about ₦5.85 trillion ($4.3 billion) in share applications in its initial public offering, close to three times what the company set out to raise in what is the largest IPO in Africa's history.
Nearly 3.8 million investors applied for about 11.15 billion shares in Dangote Petroleum Refinery & Petrochemicals FZE, according to subscription data for the offer, which closed on Oct. 27. The company offered about 4.1 billion ordinary shares at ₦525 each, aiming to raise about ₦2.15 trillion ($1.6 billion).
Investors in Nigeria put in orders worth about $1.9 billion, while international buyers accounted for roughly $2.1 billion, according to people familiar with the matter. South Africa's Public Investment Corp., which manages about $220 billion of pension assets, sought a large allocation, and Nigerian pension fund managers also bid.
Small investors turn out
The offer opened on Sept. 14 and was due to close on Oct. 13 before regulators extended it by two weeks. It drew applications from 120 countries, including all 54 African nations.
Retail investors made up the bulk of the applicants. About 84% of subscribers, or roughly 3.2 million people, applied for 62.26 million shares worth ₦32.69 billion ($23.9 million), less than 1% of the shares sought. Another 404,000 or so applicants put in for 178.45 million shares worth ₦93.69 billion ($68.6 million).
The money came overwhelmingly from large investors. The single biggest application was for 771 million shares, worth about ₦405 billion ($296.7 million), or 6.9% of all the shares sought.
Dangote has said he wants the refinery to be owned by as many as 10 million investors, and has pitched the sale as a way to give ordinary Nigerians and Africans a piece of the plant.
Allotment comes next
The Securities and Exchange Commission has allowed the refinery to keep up to 30% more than the base offer if demand exceeded it, which would lift the amount raised to as much as about ₦2.8 trillion ($2 billion). The final figure depends on how many shares are allotted, so most of the ₦5.85 trillion in bids will be returned to applicants.
The next step is the allotment announcement, which needs the regulator's approval. The shares will then begin trading on the Nigerian Exchange. The company has not given dates for either step.
Dangote's biggest bet
The refinery in the Lekki Free Zone near Lagos can process 650,000 barrels of crude a day, making it the largest single-train refinery in the world. Dangote, 69, spent about $20 billion building it and plans to lift capacity to 1.4 million barrels a day by 2029.
The plant has changed Nigeria's fuel market since it began producing petrol in 2024, cutting the country's reliance on imported gasoline and exporting fuel to other African countries.
Dangote, Africa's richest person, built his fortune in cement, sugar and flour before moving into oil refining and fertilizer. He controls Dangote Cement Plc, the continent's biggest cement maker, and will keep a large majority of the refinery after the listing.
Figures were converted at ₦1,365 to the dollar.
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