Dangote refinery IPO sparks investor rush in Nigeria

The launch of the Dangote Petroleum Refinery and Petrochemicals initial public offering (IPO) has triggered a rush among investors in Nigeria, with heavy demand overwhelming some digital investment platforms.

Investment apps including Bamboo and Cowrywise reported unusually high traffic as retail investors scrambled to subscribe to the landmark offer.

The IPO, which opened on September 14, seeks to raise about 2.15 trillion naira ($1.6 billion) through the sale of 4.1 billion shares at 525 naira each.

Retail investors can buy a minimum of 10 shares, worth 5,250 naira, in what has been billed as Africa's largest IPO.

The refinery is valued at about $47.6 billion and currently has a production capacity of 700,000 barrels per day.

Dangote plans to use the proceeds from the offer to support expansion, with the facility eventually expected to increase its capacity to 1.4 million barrels per day.

The IPO could also significantly boost the fortune of founder and Africa's richest man, Aliko Dangote.

Dangote's net worth could rise by about $23 billion to as much as $58.2 billion once the refinery's IPO valuation is reflected in his holdings.

That would move him ahead of US hedge fund billionaire Ken Griffin and technology billionaire Eric Schmidt in the global wealth rankings.

Dangote will retain a controlling stake in the refinery following the public offering. (With input from the wires)