Dangote Refinery IPO Catapults Founder into World’s Top 40 Billionaires

*Wealth surges nearly $20bn in 10 days to $51.3bn

Aliko Dangote, Africa’s richest man, has seen his fortune surge by $19.8 billion in the past 10 days to $51.3 billion, according to Forbes, pushing him into the world’s top 40 richest people as shares of his Dangote Refinery opened to public investors on Monday.

The commencement of the offer on September 14 marks a major milestone for the privately controlled refinery, which is seeking to raise up to $1.6 billion in what is expected to be Africa’s biggest initial public offering. The offer comprises 4.1 billion shares priced at N525 each, with a minimum subscription of 10 shares, or N5,250.

Dangote’s wealth rose from $31.5 billion on September 4 to $51.3 billion, according to Forbes’ latest estimate. The increase moves him to 36th place among the 3,397 billionaires tracked by the American business magazine, up from outside the global top 70.

Forbes’ real-time billionaire tracker also showed Dangote’s wealth at $51.3 billion on Monday, up from $25.6 billion at the end of last year.

Forbes updates billionaire net worth estimates frequently during trading hours, reflecting movements in the value of publicly traded holdings, while privately held assets are reviewed periodically.

“There’s likely more riches coming his way as his refinery, the continent’s largest, begins selling shares to individual investors,” Forbes said in a report on Monday.

The cement magnate is offering individual investors up to 4.1 billion shares, representing about 3 percent of the company, at N525 per share. The offer will close on October 13.

“We have D-Day on Monday,” Dangote recently told Forbes, referring to the launch of the offer. He said the timing of the IPO meant he would be late to an investment summit in Canada that he had promised to attend with Prime Minister Mark Carney.

Bloomberg’s Billionaires Index, which uses a different methodology, valued Dangote’s fortune at $35.3 billion on Monday and projected that his wealth could rise to as much as $58.2 billion following the refinery IPO.

According to Bloomberg calculations, the IPO could add as much as $22.9 billion to Dangote’s personal wealth, potentially moving him above US hedge fund manager Ken Griffin and technology billionaire Eric Schmidt in the global wealth rankings.

The IPO is expected to raise about $1.6 billion and value the refinery at approximately $47.6 billion based on the offer price, according to the transaction terms.

The offering is also a major test of the depth of Nigeria’s capital market and its ability to mobilise domestic and international capital for large African businesses.

For Dangote, the listing forms part of a broader strategy to build an Africa-wide industrial empire, including plans to double the capacity of his Nigerian refinery and develop a new processing plant in Kenya.

The refinery, which reached full capacity this year, has given Nigeria a major domestic source of refined petroleum products and helped position the country as a net exporter of refined fuel. Reuters reported that the refinery is currently operating at 700,000 barrels per day.

“We, as Nigerians and Africans, must be bold and lead the change to develop our economies,” Dangote said at an IPO signing ceremony in Lagos last week. “Only then will the others take us very seriously; only then we’ll be in a position to negotiate and walk away with terms we deserve, not those terms that are given to us.”

The businessman has positioned the offering as an “IPO for the people”, with a minimum subscription of 10 shares aimed at broadening participation among retail investors alongside institutional investors.

The offering is also Shariah-compliant and could provide dollar-denominated dividends, according to the company.