Dangote Refinery’s IPO closes with investors from 120 countries

A Nigerian oil refinery owned by Africa’s richest man Aliko Dangote has closed the continent’s biggest initial public share offering, claiming to have raised funds from investors in 120 countries. The IPO for the Lagos-based Dangote Petroleum Refinery was initially due to close on October 13 but was extended by two weeks to allow more Africans to participate.

The company did not disclose how much money was potentially raised by the offering, after saying its target was $1.6 billion. But Aliko Dangote said earlier this month that it had exceeded that goal by “more than three, four times”. “This is a historic achievement for Africa. It shows what is possible when we believe in our continent, work together and invest in our shared future,” he said in a statement late Tuesday.

The massive refinery has a capacity of 700,000 barrels per day and aims to double its output to 1.4 million barrels per day, potentially making it the world’s largest refinery, surpassing the Jamnagar refinery in India. Investors from all 54 African countries and five other continents participated in the offering, the company said. “Investor applications spanning 120 countries demonstrate the extraordinary international interest in our business and the confidence that investors are placing in the future of this refinery,” Aliko Dangote said “The opportunity to own a stake in a major African industrial enterprise has reached investors across every African country and all six inhabited continents,” he added.

In July, the refinery secured $2.5 billion in investment from private investors. Last month, the company broke ground on a planned $16 billion refinery on Kenya’s Lamu island, with a projected capacity of 700,000 barrels a day. Africa currently imports more than 70 percent of its refined fuel, according to an Africa Finance Corporation (AFC) report in April.