KAMPALA, Oct 7 – Uganda’s Capital Markets Authority (CMA) has approved domestic investors to participate in the initial public offering of Dangote Petroleum Refinery and Petrochemicals, extending access to the Nigerian refinery’s $1.6 billion share sale into another East African market.
The regulator said it had approved the offer of securities under the IPO following an application submitted on behalf of the refinery by Stanbic IBTC Capital Limited.
The approval comes as Dangote Refinery seeks to broaden participation in what has become Africa’s largest IPO, with the company offering shares to investors as part of plans to finance the expansion of its processing capacity.
Dangote Group launched the offering in September, targeting up to 2.15 trillion naira, or about $1.6 billion, if fully subscribed. The refinery is seeking to increase its capacity from 700,000 barrels per day to 1.4 million barrels per day.
The offer has been positioned as a “people’s IPO”, reflecting the company’s push to attract a broad base of retail and institutional investors.
Uganda’s approval follows similar regulatory action in Kenya, where the Capital Markets Authority approved a short-form prospectus allowing eligible investors to participate through a Global Depository Receipt (GDR) structure.
The Kenyan structure is designed to allow investors to gain exposure to the Nigerian refinery through securities linked to the underlying Dangote shares, with the GDRs eventually intended for listing on the Nairobi Securities Exchange, subject to further regulatory approvals.
The expansion into East African capital markets gives Dangote Refinery a wider investor base beyond Nigeria and supports the company’s effort to distribute ownership of the facility across African markets.
The refinery has also set an ambitious target for retail participation. Chief Executive David Bird said the company is aiming for 10 million retail investors, more than twice the 4.5 million retail subscribers recorded during Saudi Aramco’s 2019 IPO.
Built by Dangote Group over roughly a decade at a cost of about $20 billion, the refinery is located on the outskirts of Lagos and began operations in 2024.
With current processing capacity of 700,000 barrels per day, the facility has become a major component of Nigeria’s petroleum supply infrastructure and is intended to reduce the country’s dependence on imported refined fuels while supporting exports.
The planned expansion to 1.4 million barrels per day would further increase its scale and strengthen its position in regional and international refined petroleum markets.
Uganda’s approval therefore adds another channel for African investors to participate in the ownership of one of the continent’s largest industrial assets, as Dangote Refinery seeks to mobilise capital for its next phase of expansion.
