Africa’s largest initial public offering (IPO), launched by Aliko Dangote to give ordinary Nigerians and investors across the continent a stake in his $20 billion refinery, has fallen short of its target of attracting 10 million investors despite receiving orders worth approximately ₦6.4 trillion.
- Africa’s largest IPO, launched by Aliko Dangote for his $20 billion refinery, fell short of attracting 10 million investors despite orders worth ₦6.4 trillion.
- Dangote cited time constraints and difficulties in accessing the offer as reasons for not meeting the investor target.
- The IPO, branded as the ‘People’s IPO’, offered 4.1 billion shares at ₦525 each and was extended due to high interest.
- Applications came from 120 countries, including all African nations, but regulatory challenges complicated broader access to the offer.
Dangote disclosed the shortfall on November 8 at the 25th annual conference of Women in Management, Business and Public Service (WIMBIZ) in Lagos. He attributed the outcome to time constraints and difficulties prospective investors encountered accessing the offer.
“We didn’t hit the 10 million because of time constraint, and a lot of people, they didn’t know how to access,” he said, according to TheCable.
Dangote added that the final number of investors had not yet been officially determined, although millions had participated.
The IPO, marketed as the “People’s IPO”, opened on September 14, offering 4.1 billion ordinary shares at ₦525 each. The minimum subscription was 10 shares, costing ₦5,250, with the offer initially scheduled to close on October 13 before being extended to October 27.
Reuters reported that the offer attracted approximately ₦6.4 trillion in orders, about three times its ₦2.15 trillion base target, from Nigerian retail and institutional investors.
From Nigerian ownership to a pan-African investment drive
The offer also sought to extend ownership beyond Nigeria. Dangote said applications came from 120 countries, including all 54 African nations, while Kenyan investors received access through a separate global depositary receipt programme.
Reuters reported on November 4 that Dangote had held discussions with African stock exchanges about widening access to the offer, although differences in national listing rules and regulatory approvals complicated the process.
The proceeds are intended to support a much larger expansion programme. According to the IPO prospectus, Dangote plans to invest $14.3 billion to increase the Lagos refinery’s processing capacity from 700,000 barrels per day to 1.4 million barrels per day by 2029. The IPO is expected to provide only part of the funding, with additional financing also required.
Beyond Nigeria, Dangote is extending his refining ambitions into East Africa with a planned $16 billion, 700,000-barrel-per-day refinery in Lamu, Kenya. Construction was officially launched on September 30, 2026, in partnership with the Kenyan government, with completion targeted for 2030.
