Dangote Refinery IPO Draws Orders Three Times $1.6 Billion Target

Aliko Dangote’s refinery has reportedly received US$4.78 billion in orders for its initial public offering, with investors from 119 countries competing for shares in Africa’s largest IPO – roughly three times the US$1.6 billion initially sought.

Two sources told Reuters the orders came from Nigerian retail and institutional investors, with more than two million applicants using digital channels. Bloomberg reported US$1.5 billion to US$1.6 billion in fully funded domestic and retail commitments before international demand was accommodated. Investors from all 54 African countries applied.

International demand could exceed remaining shares even if Dangote exercises a 30 percent over-allotment option, which would raise the IPO to about US$2.1 billion. The company has not confirmed it will do so.

The refinery offered 4.1 billion new shares at 525 naira (US$0.39) each, with a minimum application of 10 shares. Dangote has billed the sale as “The People’s IPO,” targeting up to 10 million retail investors. The offer price implies a valuation of about US$47 billion.

The offer opened September 14 and was extended to October 27 to accommodate overseas investors. It closed Tuesday; final subscription figures have not been published. Issuing houses will submit a proposed allotment basis to Nigeria’s Securities and Exchange Commission. Shares are expected to trade on the Nigerian Exchange after settlement.

Net proceeds of about 2.11 trillion naira (US$1.58 billion) will fund part of a US$14.3 billion, five-year expansion. The refinery processes about 700,000 barrels per day and aims to double capacity to 1.4 million by 2029.