LAGOS, Sept 7 – Aliko Dangote, Africa’s richest man and advisers to his refinery business have signed the registration documents for a proposed $1.6 billion initial public offering, moving the company closer to what could become Africa’s largest equity offering.
Dangote Petroleum Refinery and Petrochemicals FZE plans to offer 4.1 billion shares at N525 each, equivalent to about $0.40 per share, according to the signed prospectus. The offer is scheduled to open on September 14 and close on October 13.
The proposed transaction would value the refinery at approximately $49 billion and could raise about N2.2 trillion from investors. The signing ceremony was held in Lagos on Monday, led by Dangote in the presence of advisers and other participants involved in the pan-African offering.
The minimum subscription has been set at 10 ordinary shares, requiring an investment of N5,250, Dangote said at the event. Lagos-based Vetiva Advisory Services Limited is coordinating the capital raising.
The signing follows approval from Nigeria’s Securities and Exchange Commission last week, clearing the way for the proposed public offering.
A significant portion of the proceeds is expected to support the refinery’s expansion plans. The 700,000-barrel-per-day facility, located on a 6,180-acre site on the outskirts of Lagos, is targeting a doubling of capacity to 1.4 million barrels per day.
If completed, the expansion would further strengthen the refinery’s position in regional and international petroleum markets. Its eventual listing could also have a substantial impact on Nigeria’s stock market, with the company’s market capitalisation potentially adding more than a third to the Nigerian Exchange once its shares begin trading.
The company is also considering a broader African capital-market presence. Plans for a cross-border listing on the Johannesburg Stock Exchange are being developed, while the refinery is also considering potential listings in Egypt, Kenya, Ghana and Rwanda.
Investor interest has already been tested through a private placement conducted in July. That transaction raised $2.5 billion from institutional investors and high-net-worth individuals and was reportedly oversubscribed by 270%.
Some of the demand that could not be accommodated through the private placement may migrate to the public offering. Interest among Nigerian retail investors had become sufficiently strong before regulatory approval that the SEC moved in June to halt marketing activities associated with the proposed share sale.
The regulator’s intervention followed reports that prospective retail investors, including individuals with limited experience in equity investing, were opening brokerage accounts in anticipation of the offering.
Interest is also emerging among major international investors. Abu Dhabi National Oil Co., or ADNOC, has reportedly opened discussions with Dangote Refinery about potentially acquiring a stake, while other large investors have also approached the company, according to Bloomberg.
The IPO comes at a potentially important moment for Nigeria’s capital markets. The country’s restoration to frontier market status by FTSE Russell is expected to improve access to international portfolio capital following a period in which Nigeria was classified as an unclassified market.
A transaction of the refinery’s scale could also provide a reference point for other large Nigerian companies considering public listings. By accessing equity markets, major businesses can broaden their funding sources, increase public ownership and potentially improve their visibility among domestic and international investors.
State-owned NNPC Limited has considered an initial public offering since its transition to limited liability company status, with discussions about a potential listing continuing in recent years. A successful Dangote Refinery offering could provide a practical example of how a large Nigerian energy company can use the capital market to finance expansion while opening its ownership structure to investors.
The refinery, which began production in January 2024, has also rapidly increased its role in international petroleum markets. In June, it became the largest external supplier of jet fuel to Europe, according to the information provided, and maintained that position in July.
With the IPO now scheduled to begin on September 14, investor attention will shift towards subscription levels, institutional participation and the company’s eventual listing plans. The outcome could have implications well beyond Dangote Refinery, potentially shaping the pipeline of major corporate listings and the depth of Nigeria’s capital market.
