Nigeria: Dangote Refinery to Launch $1.6bn IPO

What the report says

Dangote Refinery has completed the approval process for its initial public offering, clearing the way for what Leadership described as a $1.6 billion share sale and one of Africa’s largest ever. The company, led by Aliko Dangote, is expected to launch the offer next week, following a sign-off ceremony in Lagos attended by advisers and other participants in the transaction.

According to the report, the refinery plans to sell 4.1 billion shares at N525 each, with a minimum subscription of 10 shares. The raise is meant to bring in about N2.2 trillion and help fund an expansion of the refinery’s capacity from 700,000 barrels per day to 1.4 million barrels per day. Lagos-based Vetiva Advisory Services Limited is coordinating the capital raise, and the Securities and Exchange Commission had already approved the offer the previous week.

The IPO is also expected to support the company’s broader market ambitions, including a planned listing on the Nigerian Exchange later this year and possible cross-border listings in Johannesburg and other African markets. Leadership reported that the offer could lift the market value of the refinery to nearly $50 billion and may increase liquidity and investor participation in Nigeria’s stock market.

The refinery, which began production in January 2024, has become an important supplier of refined products, including jet fuel, to international markets. More broadly, the listing is being watched as a possible template for other large Nigerian companies considering public offerings, including state-owned NNPC Limited. As background, major IPOs in energy can have wider effects on capital markets, industrial expansion and investor sentiment, though any final impact will depend on demand and execution.