Dangote Refinery plans to list in the US in three to four years

Africa’s richest man, Aliko Dangote, plans to list his oil refinery in the United States in the next three to four years. The refinery can produce 700,000 barrels of oil per day. He shared this news at the Fact Behind the Offer event in Lagos on Monday morning. This event took place at the Nigerian Exchange.

“In the next three years, by the grace of God, three to four years or thereabouts, we will try and also list outside the African continent, most likely in the U.S,” he said.

Mr. Dangote added, “By doing so, because the company will be very, very large, we will be having 10 per cent of the total America’s capacity.”

The initial public offering (IPO) aims to allow more people in Africa to own a share of the refinery. This is especially aimed at retail investors, who make up a large part of the market. The refinery also hopes to double its production capacity by 2030 with funds from this transaction.

Mr. Dangote explained that the IPO is not just about raising money. He said the company has $46 billion already lined up for the plant's expansion and to achieve its goals for 2030.

He further explained that the share sale is meant to spread ownership of the refinery to as many people as possible. “Even if there is mishap, devaluation, the business you are investing in is a dollarized business. Don’t let the train leave you at the station,” he said. He assured local investors that their investments would be protected from currency issues, with plans to pay dividends in dollars.

He mentioned that the private placement in July raised $2.5 billion. This placement saw a lot of applications due to unexpected interest from institutional investors and wealthy individuals.

The $2.5 billion raised was the amount the refinery aimed to collect from both the private placement and the IPO. “We refused to take one single currency other than the dollar. With the private placement, we have already met our demand,” he stated.

By the end of the year, Mr. Dangote said the refinery will be the largest company in Africa, not just in Nigeria. He added that a company of this size should create value for millions of people, not just a few.

Additionally, the refinery and petrochemical plant plans to build the first linear alkaline benzene train in the world. This will be a major raw material for making detergents, with a capacity of 400,000 metric tonnes. This will exceed Egypt’s 50,000 tonnes and Algeria’s 100,000 tonnes.