Aliko Dangote, Africa's richest man, has confirmed plans to list his group's fertiliser business on the stock market in 2028. This move is part of efforts to expand ownership across the conglomerate. Dangote made the announcement during an interview at the Qatar Economic Forum. He expressed his ambition to make the fertiliser business the largest of its kind globally.
Dangote Fertiliser operates a $2.5 billion fertiliser plant in Ibeju-Lekki, Lagos, with an annual production capacity of three million tonnes of urea. The company plans to increase its fertiliser production capacity to about 12 million tonnes annually by 2028. This will be achieved through the expansion of its Nigerian operations and the establishment of a proposed plant in Ethiopia.
The planned initial public offering (IPO) of the fertiliser business will provide investors with another opportunity to take stakes in one of Dangote Group's major businesses. This follows the recent IPO of Dangote Petroleum Refinery, which drew strong interest from Nigerian retail investors. The refinery's share offer was marketed as the "people's IPO" and triggered a wave of social media jokes from new shareholders portraying themselves as co-owners and executives of the business.
Dangote mentioned that the new shareholders of the refinery have been calling for a board meeting, joking about their enthusiasm. He acknowledged the trend during the interview at the Qatar Economic Forum. The ongoing IPO of Dangote Petroleum Refinery has demonstrated significant interest from retail investors, and the planned fertiliser IPO is expected to attract similar attention.
Historically, Dangote Group has operated its ventures without partners. However, the group is now seeking to bring more investors into its businesses. Dangote stated that they have been doing everything by themselves but are now looking for a large number of people to become their partners.
The $2.5 billion fertiliser plant in Ibeju-Lekki, Lagos, is a significant investment in the sector. With a planned increase in production capacity to 12 million tonnes annually, the company is poised for substantial growth. The establishment of a new plant in Ethiopia is part of this expansion plan, aimed at increasing the company's presence in the region.
The confirmation of the 2028 IPO for the fertiliser business provides a clear timeline for investors and stakeholders. This move aligns with Dangote Group's strategy to open up its businesses to more investors. The planned listing is expected to make the fertiliser business one of the largest globally, according to Dangote.
Key points
- Aliko Dangote plans to list his fertiliser business in 2028.
- Dangote Fertiliser aims to increase production capacity to 12 million tonnes annually by 2028.
- The planned IPO follows the successful listing of Dangote Petroleum Refinery.
