LAGOS, April 17 – Aliko Dangote plans to sell about 10% of his oil refining business through an initial public offering across multiple African stock exchanges, as part of a broader push to fund expansion across his industrial operations.
Dangote Petroleum Refinery and Petrochemicals FZE will pay dividends in dollars following the listing, according to Dangote, who confirmed that Stanbic IBTC Capital Ltd., Vetiva Advisory Services Ltd. and FirstCap Ltd. have been appointed as advisers on the transaction. He however did not disclose a timeline or valuation for the share sale.
The planned IPO forms part of a wider $40 billion investment programme over the next five years. The expansion drive includes plans to quadruple fertilizer production, more than double refining capacity, and develop new projects such as potash and phosphate plants in the Democratic Republic of Congo, as well as copper refining operations in Zambia.
The 650,000 barrel-a-day refinery, the largest in Africa, recently reached full operational capacity, coinciding with supply disruptions in global oil markets linked to tensions in the Middle East. The shift has supported increased demand for refined products from the facility across Africa and into international markets.
Export data shows diesel shipments have risen to about 79,500 barrels per day this month, up from roughly 73,600 barrels per day in March. Gasoline exports, however, declined to around 50,100 barrels per day from nearly 102,400 barrels per day in the previous month.
The refinery is also emerging as a key supplier of jet fuel to Europe, adding to its growing role in global energy trade. Industry analysts, including Wood Mackenzie, describe the facility as highly profitable.
Dangote, whose net worth is estimated at $32.8 billion, said the group is targeting sectors with significant infrastructure gaps across the continent as it scales operations.