Africa's richest man, Aliko Dangote./SCREENGRAB
Africa's richest man, Aliko Dangote, is taking a three per cent stake in his Nigerian refinery business to the public in an IPO that could raise Sh200.8 billion ($1.55 billion).
The offer has attracted interest beyond Nigeria, including from Kenyan investors keen to know whether they can buy shares in the Dangote Petroleum Refinery and Petrochemicals Freezone Enterprise.
The IPO is being conducted in Nigeria and has not been approved or publicised as a public offer in Kenya. However, Kenyan investors can access the shares through private placement arrangements offered by some local investment firms.
Here is what Kenyan investors need to know about the offer.
What exactly is Dangote selling?
Dangote is offering 4.1 billion shares, equivalent to a three per cent stake in the Lagos-based refinery.
Each share is priced at Sh49.25, equivalent to about 38 US cents or 525 Nigerian naira.
The company plans to use the proceeds to expand its refinery capacity from the current 700,000 barrels per day to 1.4 million barrels per day.
Why are Kenyan investors interested?
Interest in Kenya has been partly driven by Dangote's earlier plans to cross-list the refinery on five other African exchanges, including the Nairobi Securities Exchange (NSE), South Africa, Egypt, Ghana and Rwanda.
Although the planned cross-listing did not form part of the current IPO, the possibility has kept the refinery on the radar of investors in those markets.
Dangote has also announced plans to establish an oil refinery in Lamu, Kenya, with groundbreaking expected shortly.
The billionaire has previously attracted public interest in Kenya through his reported interest in buying Arsenal Football Club, which he supports.
Why isn't the IPO being offered directly on the NSE?
The refinery is being listed in Nigeria rather than simultaneously across the five African exchanges previously considered for cross-listing.
Sources have attributed the decision to the complexity of securing regulatory approvals across multiple markets at the same time.
A multi-market listing would have required several regulatory processes to be completed simultaneously, potentially delaying the fundraising exercise.
Can Kenyans still buy the shares?
Yes, but the route currently available is different from a public offer in Kenya.
Since the IPO has not been approved or publicised as a Kenyan public offering, investors can access it through private placement arrangements under the foreign investors window.
Several Kenyan brokers have partnered with Nigerian firms to facilitate access for their clients.
AXYS Investment Bank is among the firms offering the arrangement, while Kestrel Capital is also working on providing similar access.
Is there another way to access the IPO?
The NSE and the Capital Markets Authority (CMA) are working on a more direct mechanism that could allow Kenyan investors to access the offer before it closes on October 13, 2026.
If approved by the CMA, the arrangement would turn the Dangote IPO into a public offering accessible to a wider pool of Kenyan investors.
How much do I need to invest?
The minimum subscription for the IPO is 10 shares, with no maximum number specified.
At Sh49.25 per share, the minimum subscription would cost a Kenyan investor Sh492.50.
The final number of shares allocated to investors will depend on the allotment criteria determined after the offer closes.
Private placement arrangements generally require a higher minimum investment because local brokers primarily target high-net-worth and sophisticated investors.
For example, AXYS Investment Bank has set a minimum subscription of Sh258,920 ($2,000), with subscriptions closing on October 7.
Where will the shares trade?
The shares bought through the IPO will be domiciled on the Nigerian Stock Exchange, where they will trade after the offer closes.
They could later become available on other exchanges if Dangote proceeds with cross-listing plans.
The company has indicated that future listings could include the NSE as well as international markets such as London and New York.
What would an NSE cross-listing mean for Kenyan investors?
An NSE listing would allow Kenyan investors to buy and sell the Dangote refinery shares in the local market using Kenyan shillings.
It would also provide investors with a more direct trading platform in Kenya.
One of the issues a local listing could address is foreign exchange exposure. Investors currently accessing the shares from Kenya may have to deal with currency conversions involving the shilling, US dollar and Nigerian naira.
Why has the CMA issued a warning?
The strong interest in the IPO has also prompted a warning from the Capital Markets Authority.
The regulator has cautioned investors to independently verify the authenticity and source of any prospectus or other documents relating to the offer before making payments or investment decisions.
The warning is aimed at protecting investors from fraudulent platforms or individuals falsely presenting themselves as authorised brokers involved in the IPO.
Will Dangote's Lamu refinery be listed on the NSE?
Dangote has not announced plans to list the proposed Lamu refinery on the NSE.
However, analysts expect the facility could eventually be listed locally.
Such a move would be in line with Dangote's stated ambition of increasing retail investor participation and ownership in African capital markets.
The businessman has separately outlined plans to list companies across his business empire, which includes oil refining, cement, petrochemicals, sugar, salt and fertiliser.
