Aliko Dangote, founder of Dangote Group and president of Dangote Refinery, has seen his wealth rise sharply to $51.3 billion following the launch of the refinery’s initial public offering on the Nigerian Exchange.
According to Forbes’ Real Time Billionaires List, Dangote’s net worth increased by 63.37 percent from $31.4 billion recorded on Sunday to $51.3 billion on Monday. The $19.9 billion increase also moved the Nigerian businessman from 76th to 36th position on Forbes’ global billionaires ranking. The increase came as Dangote Refinery began its initial public offering on the Nigerian Exchange, with the company seeking to raise N2.15 trillion from investors.
The refinery is valued at about $50 billion, which is more than N60 trillion based on the exchange rate used on September 4. The funds being raised through the offer are expected to support the company’s expansion plans, including increasing its crude oil processing capacity from 650,000 barrels per day to 1.4 million barrels per day. Dangote Refinery is pursuing a wider expansion programme estimated at $40 billion as it seeks to increase production and strengthen its position in the global oil and gas industry.
Speaking during the company’s Fact Behind The List programme, Dangote said he expects the refinery’s market valuation to grow significantly in the coming years. The businessman said the refinery’s valuation should reach at least $350 billion by 2030.
The IPO opened on Monday and is scheduled to close on October 13. Investors will have access to more than 4.1 billion ordinary shares in the refinery. Each share is being offered at N525, while investors are required to subscribe to a minimum of 10 shares, costing N5,250. The offering marks a major step in Dangote Refinery’s development as the company seeks to raise additional capital from the Nigerian capital market.
The refinery, located in Lagos, is one of the largest single train refineries in the world and has been positioned as a major investment in Nigeria’s energy sector. Its expansion is expected to increase its ability to process crude oil and supply refined petroleum products to the domestic and international markets. Dangote’s increased wealth is not linked to the refinery alone. His fortune comes from investments spread across several industries, including cement, sugar, banking, oil and gas.
However, the refinery’s IPO has placed renewed attention on the value of his stake in the company and the potential impact of its listing on his overall wealth. The sharp increase in his net worth also highlights how changes in the value of major private and publicly traded assets can significantly affect the fortunes of billionaires.
With the IPO now underway, investors will be watching the response to the offer and the company’s plans for the funds raised. The success of the exercise could provide Dangote Refinery with additional resources to pursue its expansion plans while giving Nigerian investors an opportunity to own a stake in one of the country’s most significant industrial projects.
The refinery’s planned capacity expansion to 1.4 million barrels per day would further increase its importance to Nigeria’s oil industry and could strengthen the country’s refining capacity over the coming years.
