Africa's richest man, Aliko Dangote, is set to see his fortune increase by $23 billion, potentially reaching $58.2 billion, with the initial public offering (IPO) of his Dangote Petroleum Refinery and Petrochemicals Fze. This surge would place him above US hedge fund tycoon Ken Griffin in wealth rankings. The IPO has garnered significant attention, with the company aiming to raise more than $4 billion at a valuation of approximately $50 billion.
The refinery has emerged as a crucial supplier of fuel to Europe, benefiting from disruptions in Middle East exports and generating substantial profits ahead of its stock market debut. In the first half of 2026, the Lagos-based refinery reported a net profit of $1.82 billion on revenues exceeding $13 billion, significantly surpassing its total revenue for 2025. This performance is attributed to higher demand and global events, including the Iran war, which have driven up oil prices.
Despite a $49 billion valuation for the single-site refinery with a capacity of 650,000 barrels per day, which some critics find high compared to multi-plant refiners like HF Sinclair (market capitalization of $19 billion for 678,000 bpd), the company defends its valuation. The public offer involves 4.1 billion shares at ₦525 each, aiming to raise about ₦2.15 trillion (approximately $4.5 billion) if fully subscribed. These proceeds are earmarked for expanding the refinery's capacity from its current 700,000 barrels per day towards 1.4 million barrels per day. The IPO, which opened on September 14 and closes on October 13, is expected to account for up to 40% of the Lagos exchange's capitalization when shares begin trading in November.
Analysts from FirstCap, a Nigerian investment bank, project the refinery's revenue to reach $28 billion by the end of 2026, more than double the previous year's earnings. The refinery's CEO, David Bird, stated that the goal is to displace less competitive imports in Africa, while CFO Bruce Tanner mentioned that most IPO proceeds would fund expansion, potentially leading to a secondary international listing. However, some critics, like UK-based accountant Feyi Fawehinmi, question the valuation, arguing that investors are paying a premium for earnings, especially given that the first-half revenues benefited from high oil prices due to the Iran war, which might not be sustained in a "normal year."
