LAGOS, Oct 27 – Dangote Petroleum Refinery and Petrochemicals FZE has reportedly secured between $1.5 billion and $1.6 billion in fully funded commitments from domestic and retail investors for its initial public offering (IPO), with applications received from investors in 119 countries.
A Bloomberg report, citing people familiar with the matter, said the level of demand could create an allocation squeeze for international investors as the offering approaches its scheduled closing date of October 27, following a two-week extension of the subscription period.
Investors from all 54 African countries have reportedly requested allocations, highlighting the geographic reach of the offering as Dangote Group seeks to broaden participation in the Lagos-based refinery.
Dangote IPO Draws Investors Across 119 Countries
The IPO has incorporated cross-border investment arrangements designed to give investors outside Nigeria access to the refinery’s shares. These include nominee arrangements involving Standard Bank Group, Egypt and Ethiopia, as well as global depositary receipts being offered through exchanges in Kenya and Botswana.
The refinery is expected to exercise a 30% over-allotment option, potentially increasing the total amount raised to approximately $2.1 billion and providing additional capacity for overseas allocations. However, international demand could still exceed the shares available to investors.
Speaking in Gaborone, Botswana, on October 14, Aliko Dangote said the refinery had already exceeded its fundraising target, with investor interest surpassing the amount being sought by more than three or four times.
Bloomberg also reported that Dangote could consider a secondary sale of part of his stake to investors who do not receive IPO allocations. Any such transaction would depend on his assessment of the final order book.
Dangote Refinery Targets $1.6 Billion From Share Sale
The IPO opened on September 14, 2026, with the company seeking to raise approximately $1.6 billion, equivalent to N2.15 trillion, through the sale of 4.1 billion ordinary shares priced at N525 each.
The minimum subscription is 10 shares, valued at N5,250, while the offering is targeting up to 10 million investors, particularly retail participants in Nigeria and other African markets.
Proceeds are intended to support the refinery’s expansion, including plans to increase processing capacity to 1.4 million barrels per day by the first quarter of 2029.
The subscription period was originally scheduled to close on October 13 but was extended by two weeks to October 27 following approval from the Securities and Exchange Commission (SEC).
As African Economy Inc. previously reported, the extension was intended to widen investor participation and give prospective subscribers additional time to complete account opening, identity verification and other regulatory requirements.
African Markets Expand Access to the IPO
Dangote Refinery has pursued regulatory approvals and trading arrangements across several African markets to facilitate cross-border participation in the share offering.
In East Africa, regulators in Kenya and Uganda cleared routes for eligible investors to participate, with the regional offering expected to raise up to $300.4 million.
In Southern Africa, Gaborone was selected as a trading venue for depositary receipts targeting investors across the region. The programme is expected to raise $500 million.
Ethiopia’s capital markets regulator approved an arrangement allowing the refinery to offer IPO-linked securities to as many as 100 qualified investors in the country.
In Egypt, Dangote Group held discussions with the Egyptian Exchange on a proposed depositary receipt programme that would enable eligible investors to gain exposure to shares in the refinery.
The company has said extending the subscription deadline would support efforts to expand access across African markets through additional distribution channels and depositary receipt programmes, while allowing investors more time to meet regulatory requirements.
The reported commitments suggest the IPO has attracted substantial demand ahead of its closing date. The final amount raised, however, will depend on the completed subscription process, share allocations and whether the over-allotment option is exercised.
