The Dangote Petroleum and Petrochemicals FZE is set to launch its initial public offering (IPO) in Lagos, in what could become one of Nigeria’s biggest capital market transactions.
The signing ceremony is taking place at Eko Hotel and Suites in Victoria Island, with the refinery offering 4.1 billion ordinary shares at ₦525 each.
The Securities and Exchange Commission (SEC) has approved the offer, paving the way for the refinery’s planned listing on the Nigerian Exchange.
The company says the IPO is expected to be listed this month.
The ceremony is being led by Aliko Dangote, president and chief executive of Dangote Industries Limited.
“The SEC approval paves the way for what could become one of the largest capital market transactions in Nigeria’s history,” the company says.
The offer marks the first public share sale by the refinery since it was commissioned in 2023, following nearly a decade of construction and an investment of about $20bn.
Located in Lagos’s Lekki Free Zone, the facility has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery.
Expansion plans
The proceeds from the IPO are expected to support a major expansion of the refinery.
Dangote plans to increase its processing capacity to 1.4 million barrels per day. If achieved, the company says the facility would become the world’s largest operating oil refinery, overtaking India’s Jamnagar complex.
The IPO follows a $2.5bn private placement completed two months ago.
At ₦525 per share, the refinery’s implied valuation is about $47bn. If fully subscribed, the listing could increase the total market capitalisation of the Nigerian Exchange by an estimated 30% to 40%.
The company also plans to attract institutional and retail investors by proposing dividends in US dollars, supported by foreign exchange earnings from refined petroleum products and petrochemical exports.
Dangote Refinery currently supplies more than 80% of Nigeria’s domestic petrol demand, according to the company.
Its long-term performance, however, remains dependent on crude oil supply, export growth and refining margins.
The Africa Finance Corporation estimates that African countries spend more than $230bn annually on imported commodities, with refined fuel accounting for more than 70% of regional consumption.
Dangote Group is also planning a 700,000-barrel-per-day coastal refinery in Lamu, Kenya, with groundbreaking expected this month.
The IPO is expected to provide a major test of investor appetite and liquidity on Nigeria’s domestic stock market.
