All is set for the signing ceremony of the Initial Public Offering (IPO) of Dangote Petroleum and Petrochemicals FZE, marking a major milestone for Nigeria’s capital market and Africa’s largest refinery project.
The ceremony is scheduled to take place at Eko Hotel and Suites in Victoria Island, Lagos, and will be led by the management of Dangote Petroleum Refinery, headed by President and Chief Executive of Dangote Industries Limited, Aliko Dangote.
At the event, the company will offer 4.1 billion ordinary shares, valued at $0.000013 each, for public subscription at ₦525 per share. The public offer represents the refinery’s first entry into the capital market since its inauguration in 2023, following nearly a decade of construction and an estimated investment of about $20 billion.
Located in the Lekki Free Zone, Lagos, the refinery currently has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery. The company plans to use proceeds from the IPO to fund a major expansion that will increase processing capacity from its current operational level of about 700,000 barrels per day to 1.4 million barrels per day.
If achieved, this expansion would make the facility the largest operating refinery in the world, surpassing India’s Jamnagar refining complex.
The Securities and Exchange Commission (SEC) has approved the launch of the IPO, paving the way for what industry observers describe as one of the biggest capital market transactions in Nigeria’s history. According to a company official, the refinery is expected to be listed on the Nigerian Exchange (NGX) on September 14.
At the offer price of ₦525 per share, Dangote Refinery is valued at approximately $47 billion. Analysts estimate that if the offer is fully subscribed, the listing could increase the total market capitalisation of the NGX by between 30 and 40 per cent.
The capital raise comes shortly after the company completed a $2.5 billion private placement in July, demonstrating strong investor interest in the refinery’s long-term prospects.
To attract both institutional and retail investors, Dangote Refinery has proposed paying dividends in US dollars. The strategy is expected to shield investors from the effects of local currency volatility by leveraging foreign exchange earnings generated from exports of refined petroleum products and petrochemicals.
