LAGOS, Sept 4 – Dangote Petroleum Refinery and Petrochemicals FZE has received approval from Nigeria’s Securities and Exchange Commission (SEC) to launch an initial public offering that could raise about $1.6 billion, putting the refinery on course for the largest IPO in Nigeria’s capital market.
The company will offer 4.1 billion shares at ₦525 each, equivalent to about $0.40 per share, according to a company spokesman. The offer is scheduled to open on September 14 after the SEC approved the transaction on Friday.
SEC Director-General Emomotimi Agama confirmed the approval, clearing the refinery to proceed with the remaining steps ahead of the public offer.
The regulator also registered the refinery’s existing 120.13 billion ordinary shares and approved its draft offer documents. The transaction includes a 15% greenshoe option, which would allow the company to increase the number of shares offered if demand exceeds the initial allocation.
The planned listing follows a series of major capital-raising transactions involving the refinery. In July, Dangote completed a $2.5 billion private placement that valued the business at approximately $40 billion. Demand for that transaction was reported at 3.7 times the shares available.
The company subsequently secured a $1 billion underwriting programme in August, comprising a $600 million funded private placement and a $400 million commitment linked to the public offering.
The IPO proceeds are expected to support Dangote Refinery’s expansion plans, including increasing its refining capacity to 1.4 million barrels per day from its current 650,000 barrels per day.
Located in Lagos, the refinery has tested production at about 700,000 barrels per day and includes a polypropylene plant with annual capacity of 900,000 tonnes and a 435-megawatt power plant. Its refined products are supplied to the Nigerian market and exported to other African countries and Europe.
The public offering would also broaden the ownership base of one of Africa’s most significant industrial projects. Dangote has previously said the IPO is intended to give Nigerian and other African investors an opportunity to own a stake in the refinery.
The proposed transaction comes as Nigeria seeks to deepen its domestic refining capacity and reduce reliance on imported petroleum products. A larger Dangote refinery would also increase the country’s potential to become a significant exporter of refined fuels to regional and international markets.
Dangote Group is separately planning a 700,000-barrel-per-day refinery in Kenya and is considering additional African listings for the Nigerian refinery following its Lagos offering. A potential international listing in London is not expected for at least three years.
