Dangote Refinery Looks To Raise $1.6 bn In IPO

Dangote Petroleum Refinery is preparing an Initial Public Offering (IPO) on the Nigerian Exchange (NGX) to raise capital for its next phase of growth.

When it goes public, the group will offer “4.1 billion ordinary shares at 525 naira each, which could raise approximately 2.15 trillion naira ($1.6 billion) if fully subscribed”, the company said in a statement.

Securities and Exchange Commission has approved the launch of the IPO, “paving the way for what could become one of the largest capital market transactions in Nigeria’s history”, the company said. The listing is expected on September 14, according to a company official.

Nigeria is Africa’s leading crude producer. Proceeds from the public float aim to fund a massive expansion of the Lagos-based facility, raising processing capacity from its current 700,000 barrels per day (bpd) operational baseline to 1.4 million bpd. Achieving that target would make it the largest operating oil refinery in the world, surpassing India’s Jamnagar complex.

The capital raise follows a $2.5 billion private placement completed in July. At the offer price of ₦525 per share, the market valuation of the refinery stands at approximately $47 billion. If fully subscribed, the listing will single-handedly increase total market capitalisation on the NGX by an estimated 30 to 40 per cent.

To attract both institutional and retail buyers, the company has proposed paying dividends in US dollars, leveraging foreign exchange revenues generated from refined product and petrochemical exports to buffer investors against local currency volatility.

While the refinery currently meets more than 80 per cent of Nigeria’s domestic petrol demand, long-term returns remain tied to crude feedstock availability, export growth, and refining margins.

Data from the Africa Finance Corporation indicates that African nations spend over $230 billion annually on imported commodities, with refined fuel accounting for more than 70 per cent of regional consumption. The Dangote Group is positioning its refining capacity to address this regional deficit.

As part of its broader footprint, the group also plans to break ground on a 700,000-bpd coastal facility in Lamu, Kenya, on 30 September. The upcoming September 14 public offering will serve as a key indicator of market liquidity on the domestic exchange and investor demand for large-scale industrial assets.