LAGOS, June 11 – Dangote Petroleum Refinery is seeking to raise approximately $1 billion through a private placement that values the company at about $39.1 billion, according to sources familiar with the transaction and details contained in a placement document.
The fundraising initiative comes as the refinery continues to ramp up operations and strengthen its position as one of the world’s largest refining facilities.
Under the offer, the company is making available 3 billion ordinary shares priced at $0.35 per share.
Sources indicated that investor interest has already surpassed the targeted fundraising amount, with demand reportedly exceeding $2 billion.
The placement requires a minimum subscription of one million shares, equivalent to $350,000, with additional purchases available in multiples of 500,000 shares.
Investors participating in the transaction will be subject to a 365-day lock-up period, according to the placement terms.
The proceeds are expected to be used to support expansion plans and general corporate purposes as the refinery increases production and broadens its market reach.
The 650,000-barrel-per-day facility, which commenced production in 2024, has rapidly become a major supplier of refined petroleum products across Nigeria and international markets.
Since operations began, the refinery has expanded output across multiple product lines, including diesel, aviation fuel, naphtha and gasoline.
Its emergence has significantly reduced Nigeria’s dependence on imported refined petroleum products while strengthening domestic fuel supply capacity.
Industry observers expect a portion of the new capital to be directed toward logistics, storage and distribution infrastructure needed to support the refinery’s growing operations.
The placement document also highlights potential investments in downstream and petrochemical activities as part of the company’s long-term growth strategy.
The fundraising exercise is widely viewed as an important step in the refinery’s evolution and could pave the way for a future public listing.
Founder Aliko Dangote has previously indicated that the refinery could pursue a stock market listing, potentially as early as this year.
A successful capital raise would further strengthen the refinery’s balance sheet while providing additional resources to support expansion initiatives and reinforce its position in regional and global energy markets.
The transaction also reflects growing investor confidence in the refinery’s long-term prospects as it continues to scale production and expand its role in Africa’s energy landscape.
