Aliko Dangote’s personal fortune could increase by almost $23 billion if the valuation projected for Dangote Petroleum Refinery and Petrochemicals is achieved following the company’s initial public offering (IPO).
According to Bloomberg calculations cited by Nairametrics, Dangote’s net worth could rise from about $35.3 billion to approximately $58.2 billion, representing an increase of about $22.9 billion.
The potential increase is linked to Dangote’s 84.34% stake in the refinery and the valuation of the business at nearly $50 billion under the IPO.
The public offer, which opened on Monday, is expected to raise about $1.6 billion for the refinery. The offer involves 4.1 billion shares priced at N525 each and could raise approximately N2.15 trillion if fully subscribed.
Dangote, 69, could consequently move higher on the global billionaire rankings, potentially overtaking prominent billionaires including US hedge fund manager Ken Griffin and technology investor Eric Schmidt.
The IPO is being positioned as a landmark transaction for Nigeria’s capital market and potentially Africa’s largest public offering. Dangote has described the share sale as an “IPO for the people”, with a minimum subscription of 10 shares.
The offer is scheduled to close on October 13, after which the refinery is expected to list on the Nigerian Exchange.
The refinery, located near Lagos, has capacity to process up to 700,000 barrels of crude oil per day and is regarded as one of the world’s largest single-train refineries.
Dangote has invested about $19 billion in the project, including supporting infrastructure such as roads, a port and quays. The group is also planning further investments of about $14.3 billion to expand the refinery’s capacity.
The public listing will give investors direct exposure to one of Nigeria’s largest industrial assets while providing the company with additional capital for expansion.
