(May 11): Aliko Dangote, Africa’s richest person, is targeting a valuation of as much as US$50 billion in a planned listing of his refinery business this year, as higher oil prices boost its prospects, people with knowledge of the matter said.
Dangote Petroleum Refinery & Petrochemicals FZE could sell as much as a 10% stake through the Nigeria listing, implying an offering size of up to US$5 billion, the people said. A senior Dangote executive said the amount is in line with the company’s current thinking, declining to comment on further details.
The company could end up selling a smaller amount in the share sale depending on market conditions and raising the rest at a later date, according to the people.
The company has also been considering the possibility of a London secondary listing for the refinery down the line, the people said, asking not to be identified because the information is private.
Proceeds of the initial public offering (IPO) will be used to double Dangote’s oil-refining capacity, which is currently about 650,000 barrels daily. The operation is becoming an increasingly important source of vital jet-fuel supplies to Europe.The Nigerian tycoon, who is worth about US$36 billion on the Bloomberg Billionaires Index, is also in the process of preparing his cement and fertiliser companies for IPOs.
His group has separately been planning to add a London listing for its building products unit, Lagos-listed Dangote Cement Plc.
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