Aliko Dangote is opening ownership of his petroleum refinery to millions of ordinary investors, setting a minimum entry fee of about $4 as he seeks to make Africa’s largest-ever initial public offering accessible to the retail market.
Dangote Petroleum Refinery and Petrochemicals is offering 4.1 billion shares at N525 each. Investors can subscribe for as few as 10 shares, worth N5 250. The offer is expected to raise about $1,6bn and value the refinery at roughly $49bn.
The IPO, scheduled to open on September 14, is being positioned as a mass-market share sale, with Dangote targeting as many as 10-million investors across Africa.
The strategy marks a significant shift from the traditional model of large public offerings, which institutional investors and wealthy individuals usually dominate.
David Bird, chief executive officer of Dangote Petroleum Refinery, said the structure was designed to ease participation, with investors needing a Bank Verification Number
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