Aliko Dangote's refinery is drawing profit from a fuel supply squeeze in Europe at the same time the company runs a share sale to gauge investor interest, according to reuters.com. The offering, described by the BBC as the largest share sale in Africa, has drawn participation from Nigerian buyers. Reuters reported the development on Tuesday.
The scale of the deal has attracted wide attention. Business Insider Africa reports that Dangote, described as Africa's wealthiest man, has left open the possibility of selling additional refinery shares and aims to reach 10 million investors. Reuters, in a separate profile, traced his path from trading sweets in a schoolyard to his current position and described the share sale as potentially his biggest transaction to date. Forbes reported that his fortune has grown by $20 billion, with more gains expected.
The offering is taking shape against a backdrop of tight fuel supplies in Europe, which has worked in the refinery's favor, per reuters.com. The BBC's coverage focused on Nigerian retail investors buying into the sale, suggesting domestic demand for a stake in the country's flagship industrial project.
What to watch next is whether the IPO meets its targets and whether Dangote follows through on opening the door to further share sales.