Africa’s richest man sets date to fully maximize his $20 billion refinery as he promises that those sharing in his fortune will earn in dollars

Africa’s richest man and CEO of the Dangote Group, Aliko Dangote, who has consistently relayed his ultimate objective for his $20 billion refinery, recently revealed the date he believes the refinery will be able to operate at full capacity.

• Aliko Dangote announced that his $20 billion refinery is projected to reach full capacity by early 2029, increasing production to 1.4 million barrels per day.
• The refinery plans to produce 2.5 million tonnes of polyolefins and 400,000 metric tonnes of linear alkylbenzene annually, marking a historic scale for Africa.
• Dangote’s refinery IPO was extended by 10 days to accommodate more local and continental investors, with strong interest from across Africa.
• As much as 20% of the IPO, valued up to $300.4 million, is being allocated to East African investors, with participation approved for Kenya and Uganda.

During the virtual final IPO roadshow, themed “Back to Where It All Began” organized by the Financial Derivatives Company for the Dangote Petroleum Refinery in Port Harcourt, Rivers State on Monday, the Nigerian billionaire disclosed that the facility is projected to reach full operating capacity by early 2029, increasing production from 500,000 to 1.4 million barrels per day.

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“By 2029 beginning, we will be at 1.4 million barrels per day. That is a total of 10 per cent of America’s total refining capacity. We will be at 2.5 million tonnes of polyolefin, which is the largest ever in African history,” Africa’s richest man stated.

The Nigerian top industrialist further outlined plans to expand the refinery’s petrochemical output, targeting annual production of at least 2.5 million tonnes of polyolefins and 400,000 metric tonnes of linear alkylbenzene.

He said the planned output would represent a significant step forward for Africa’s industrial development, as seen in the Punch.

He also relayed that the average Nigerian, and even small and low-income earners, would be a part of this expansion as it relates to the company’s initial public offering, with a promise that shareholders will get their returns in dollars.

“Most of the smaller people who are bidding for 50,000 shares and below will definitely be sure that we accommodate all of them,” he said.

During the event, Bismarck Rewane, CEO of Financial Derivatives Company, urged Nigerians to take advantage of the IPO to own a stake in one of the country’s most important industrial assets.

He said the listing could also push the Nigerian capital market’s total value above ₦220 trillion.

“This is an IPO in which three countries, Kenya, Tanzania, and Uganda, are getting their citizens to invest in Africa. The joint venture between Ethiopia and the WG refinery is building the largest fertiliser plant in the world,” Rewane said.

“You can tell. Today, Donald Trump is talking about diesel.

Diesel comes out of the refinery. Diesel is determining what happens in the 19 days from the end of the election.

The price of diesel is going to determine the outcome of the largest economy in the world.

So hold on to what you have. Make that transition from being a citizen to becoming a citizen plus an investor.

And make that transition from being a citizen plus an investor to becoming an African investor, where the economy of steel and the benefits will improve for all of us here,” he added.

Dangote IPO

Dangote, who launched the IPO of his $20 billion refinery on the 14th of September, to run till the 13th of October, recently extended the date to accommodate more local investors.

The company announced on Monday that its initial public offering (IPO) would be extended by 10 days to give investors across the continent more time to participate in what is expected to be Africa’s largest-ever share sale.

“The issuer has received very strong interest from a broad range of eligible investors across Africa and other jurisdictions,” Dangote said.

Chief Executive Officer David Bird said the extension would help the company offer the investment opportunity to more African investors.

A few days ago, a report showed that Dangote was set to open up a significant portion of its IPO to investors across East Africa.

The refinery revealed that it is making almost 20% of the IPO available to investors in the region.

The allocation could be worth as much as $300.4 million if the full offer is taken up, according to Bloomberg.

Kenyan investors will be able to participate in the refinery’s $1.6 billion IPO after the Capital Markets Authority approved a short-form prospectus for a global depository receipt linked to the offering.

The approval covers a global depository receipt submitted by Renaissance Capital Kenya. The Kenyan firm will work with Renaissance Capital Africa, which is licensed to operate in Nigeria, to facilitate access to the offer.

Prior to that, Uganda’s Capital Markets Authority approved investors in the East African country to participate in the Dangote Refinery IPO.

Reuters reported that the approval covers the offer of securities under the IPO and followed an application submitted on behalf of the refinery by Stanbic IBTC Capital.

However, access is limited to professional and high-net-worth investors.

The Dangote Refinery IPO was launched on the 14th of September on the trading floor of the Nigerian Stock Exchange (NGX) in Nigeria’s commercial hub, Lagos, representing the first refinery to be listed on the Nigerian stock market.

The initial public offering currently consists of 4.1 billion new ordinary shares priced at N525 per share, with a minimum purchase requirement of 10 shares valued at N5,250.

The issuance of 4.1 billion new ordinary shares at N525 each is expected to raise roughly N2.15 trillion upon full subscription.