NEWS
Aliko Dangote’s Wealth Could Soar to $56.9bn as Refinery IPO Set to Propel Him Into Global Top 40
Nigerian industrialist and billionaire Aliko Dangote could be on the verge of one of the biggest jumps in personal wealth ever recorded in Nigeria, following plans to list the Dangote Petroleum Refinery on the Nigerian Exchange (NGX).
Dangote is currently valued at approximately $35.5 billion on the Bloomberg Billionaires Index, making him the 64th richest person in the world. About $18.6 billion of his fortune is currently attributed to his 92.3 per cent interest in the Dangote Petroleum Refinery.
However, Bloomberg’s valuation of the refinery is still based largely on its estimated construction cost of about $20 billion rather than a publicly traded market valuation.
That could soon change.
MoneyCentral estimates that Dangote’s net worth could surge to approximately $56.9 billion once the refinery is listed and begins trading on the NGX, potentially lifting him by almost 30 places on the global billionaire rankings.
The proposed listing is expected to open its order book on September 14, with the refinery offering 4.1 billion shares at ₦525 per share.
The Securities and Exchange Commission has formally registered 120.13 billion ordinary shares for the refinery, providing the basis for the proposed public offering.
Based on the proposed IPO price, MoneyCentral estimates that the refinery could command a valuation of approximately ₦63.07 trillion, equivalent to about $48 billion.
MoneyCentral’s calculations suggest that the 4.1 billion shares being offered to investors represent approximately 3.41 per cent of the refinery’s total 120.13 billion-share structure.
The calculation also factors in the refinery’s recent private placement. In July, approximately $2.5 billion was raised at $0.35 per share, translating to roughly 7.14 billion shares, equivalent to about 5.9 per cent of the company.
The Nigerian National Petroleum Corporation (NNPC) also holds a 7.25 per cent stake in the refinery.
After accounting for NNPC’s 7.25 per cent interest, the private placement’s 5.9 per cent and the 3.41 per cent IPO float, MoneyCentral estimates that the Dangote Group would retain approximately 83.4 per cent of the refinery following the listing.
At an estimated refinery valuation of $48 billion, that remaining stake would be worth roughly $40 billion.
When combined with the other components of Dangote’s fortune, MoneyCentral projects that his implied net worth could rise to approximately $56.9 billion.
Such an increase would dramatically reshape Dangote’s position on the global wealth rankings.
Bloomberg’s Billionaires Index as of September 5 placed Hong Kong-based billionaire Zeng Yuqun at 33rd with $57.6 billion, followed by Ken Griffin of the United States with $57.5 billion and former Google chief executive Eric Schmidt with $57.4 billion.
Tencent co-founder Ma Huateng was ranked 36th with approximately $52.9 billion.
If Dangote’s fortune rises into the projected $56.7 billion to $57.1 billion range, he would potentially move ahead of Ma Huateng and into the vicinity of Schmidt on the Bloomberg ranking.
That would put the Nigerian billionaire at around 36th place among the world’s richest people, marking a spectacular rise from his current 64th position.
The projected $21 billion increase in Dangote’s wealth would not necessarily materialise immediately when the IPO opens. The major change would come once the refinery becomes publicly traded and investors establish a market price for its shares on the NGX.
With the proposed IPO scheduled to commence on September 14, the listing could provide the first major market-based valuation of one of Africa’s largest industrial projects.
If the refinery achieves the valuation projected by MoneyCentral, the development could dramatically alter both the perceived value of Dangote’s business empire and his standing among the world’s wealthiest individuals.