Dangote Refinery opens $1.6bn IPO at ₦525 per share, sets ₦5,250 minimum
Dangote Refinery is preparing to launch a $1.6 billion IPO, potentially Africa’s largest public equity offering.
The company will offer 4.1 billion shares at ₦525 each, with retail investors able to participate from ₦5,250.
The offering values the 700,000-barrel-per-day refinery at nearly $50 billion, with proceeds expected to support expansion to 1.4 million bpd.
The IPO follows a $2.5 billion private placement that was reportedly oversubscribed by 270%, highlighting strong investor interest ahead of the public sale.
Clarivox News - Dangote Refinery has completed the endorsement of documents for its planned $1.6 billion initial public offering (IPO), clearing another hurdle towards what could become Africa’s largest public equity sale.
The company plans to offer 4.1 billion ordinary shares at ₦525 each, seeking to raise about ₦2.2 trillion from investors. The minimum subscription has been set at 10 shares, meaning retail investors can participate with ₦5,250.
Aliko Dangote, founder of the 700,000-barrel-per-day refinery, disclosed the minimum subscription at a sign-off ceremony in Lagos on Monday, attended by advisers and other parties to the transaction. Vetiva Advisory Services Limited is coordinating the capital raise.
The offering, scheduled to launch on September 14, follows approval by Nigeria’s Securities and Exchange Commission (SEC).
At the offer price, the IPO would value the Lagos-based refinery at nearly $50 billion. Proceeds are expected to support plans to double the facility’s refining capacity to 1.4 million barrels per day.
The listing could also have significant implications for Nigeria’s capital market. At the proposed valuation, Dangote Refinery could substantially increase the market capitalisation of the Nigerian Exchange when its shares are listed later this year.
The company is also considering expanding its investor base beyond Nigeria. Plans are under consideration for a cross-listing on the Johannesburg Stock Exchange, while Egypt, Kenya, Ghana and Rwanda have also been identified as potential markets for future listings.
Investor interest has already been tested. A private placement preceding the IPO raised $2.5 billion from institutional investors and high-net-worth individuals in July and was reportedly oversubscribed by 270 per cent.
The level of interest had earlier prompted regulatory intervention. In June, the SEC ordered a halt to marketing activities surrounding the proposed share sale before formal approval, amid reports that retail investors were opening trading accounts in anticipation of the offering.
Interest may also extend to international energy companies. Bloomberg reported on Monday that Abu Dhabi National Oil Company (ADNOC) had held discussions about potentially acquiring a stake in the refinery. The report added that other major investors had also approached the company.
The IPO comes as Nigeria seeks to attract more international portfolio investment following FTSE Russell’s decision to restore the country to frontier-market status after nearly three years under an unclassified designation.
Beyond Dangote Refinery, the transaction could provide a significant test of investor appetite for large Nigerian corporate listings and the ability of the domestic capital market to finance major infrastructure projects.
The refinery began production in January 2024 and has since increased its presence in international fuel markets. In June, it overtook the United States as the largest external supplier of jet fuel to Europe, a position it maintained in July.
If completed as planned, the IPO would give investors direct exposure to one of Africa’s largest industrial assets while providing a major test of the depth of Nigeria’s equity market.
