DANGOTE REFINERY SET FOR N4.1BN-SHARE IPO, TARGETS CAPACITY EXPANSION
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By Aishat Momoh. O.
All is set for the signing ceremony of the Dangote Petroleum and Petrochemicals FZE Initial Public Offering (IPO), scheduled to hold at Eko Hotel and Suites, Victoria Island, Lagos.
The private refinery is offering 4.1 billion ordinary shares of $0.000013 each at ₦525 per share as part of the public offering.
The ceremony will be led by the management of Dangote Petroleum Refinery, headed by Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited.
The IPO marks the refinery’s first public offering since its inauguration in 2023, following nearly a decade of construction and an investment of approximately $20 billion.
Located within the Lekki Free Zone in Lagos, the facility has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery.
The Securities and Exchange Commission has approved the IPO, which the company described as potentially one of the largest capital market transactions in Nigeria’s history.
A company official said the refinery is expected to be listed on the Nigerian Exchange on September 14.
According to the company, proceeds from the public offering will be used to finance a major expansion of the facility, with plans to increase its processing capacity from its current operational baseline of 700,000 barrels per day to 1.4 million barrels per day.
If achieved, the planned expansion would position the facility as the largest operating oil refinery in the world, surpassing India’s Jamnagar refining complex.
The IPO follows a $2.5 billion private placement completed by the company in July.
At an offer price of ₦525 per share, the refinery’s implied market valuation is estimated at approximately $47 billion.
The proposed listing could also significantly increase the overall market capitalisation of the Nigerian Exchange, with estimates suggesting an increase of between 30 and 40 per cent if the offering is fully subscribed.
To attract institutional and retail investors, the company has proposed paying dividends in US dollars, leveraging foreign exchange earnings generated from refined petroleum products and petrochemical exports.
The refinery currently supplies more than 80 per cent of Nigeria’s domestic petrol demand, although the company’s long-term performance will depend on factors including crude feedstock availability, export growth and refining margins.
The Africa Finance Corporation estimates that African countries spend more than $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 expanding refining operations to help address the continent’s significant refined petroleum products deficit.
As part of its broader expansion plans, the group is also expected to break ground on a proposed 700,000-barrel-per-day coastal refinery in Lamu, Kenya, on September 30.
The September 14 public offering is expected to provide a major test of investor appetite and market liquidity on the domestic exchange, particularly for large-scale industrial assets.
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