By Abubakar Yunusa
Aliko Dangote, Africa’s richest man, is reportedly targeting a valuation of up to $50 billion for his refinery business ahead of the planned initial public offer (IPO) expected later this year.
Dangote had, in 2025, said the refinery could sell up to 10 percent stake in the listing, implying a deal size of up to $5 billion (N6.86 trillion at current official exchange rate), according to Bloomberg, which first reported on the valuation.
A senior executive at the company reportedly confirmed to Bloomberg that the figure aligns with its current valuation expectations.
In May 2024, the refinery disclosed plans for a dual listing on the London Stock Exchange (LSE) and NGX Limited.
The refinery said it would be listed on the stock exchanges in the United Kingdom (UK) and Nigeria because the NGX may lack adequate depth to exclusively handle the petroleum refinery.
However, media reports indicate that the listing plan may stretch beyond Nigeria and the UK to include other exchanges within the African region.
Funding from the listing could be pumped into the company’s expansion plans as the Dangote Group intends to scale up the 650,000-barrel-per-day (bpd) plant to 1.4 million bpd.
While the IPO remains top on investors’ watchlist, Dangote also disclosed plans to expand into East Africa with a proposed 650,000 bpd refinery project.
In an interview with the Financial Times, the billionaire said he is considering Kenya as the preferred location for the refinery.
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” Dangote said in the interview.
Dangote’s comments on the project come weeks after Kenyan President William Ruto revealed that East African countries were discussing plans for a joint refinery project at Tanzania’s Tanga port, modelled after the Dangote refinery in Nigeria.
However, Dangote suggested Kenya may hold a stronger commercial advantage over Tanzania.
“Kenyans consume more. It’s a bigger economy,” he said.
“The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do.”
The businessman estimated that the proposed refinery would cost between $15 billion and $17 billion to build.
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