DANGOTE REFINERY IPO TO COMMENCE IN 12 DAYS
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By:Tajudeen Aminat
The President of Dangote Industries Limited, Aliko Dangote, has announced that the initial public offering of the Dangote Refinery is expected to open within the next 10 to 12 days.
Dangote made the disclosure on Thursday while addressing investors and analysts in Botswana, according to Reuters.
The $20bn facility, described as Africa’s largest refinery, is projected to raise about $5bn through the IPO, potentially making it the biggest public offering in Africa.
Dangote said the planned listing would support the company’s ambition to expand the refinery’s capacity to 1.4 million barrels per day.
“Our dream is that we want to make sure we double the capacity of the refinery, which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” he said.
The Lagos-based refinery, which has a designed capacity of 650,000 barrels per day, reached full capacity in February and has subsequently tested production levels of up to 700,000 barrels per day.
Although Dangote Industries does not publicly disclose the refinery’s profit margins, refining companies globally have recorded stronger earnings in recent months amid disruptions in the Middle East that have increased demand for alternative fuel supplies.
Beyond the refinery IPO, Dangote also disclosed plans to expand the group’s international presence.
Dangote Cement is expected to pursue a secondary listing on the London Stock Exchange, potentially in October, in a move aimed at attracting a wider pool of international investors.
He also confirmed plans to establish a new refinery on Kenya’s coast in partnership with East African governments. The facility is expected to supply refined petroleum products to Kenya and neighbouring countries while reducing the region’s reliance on imported fuel.
Construction of the proposed Kenyan refinery is expected to take up to three years and would represent the Dangote Group’s largest refining investment outside Nigeria.
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