Dangote Refinery has completed the endorsement of its IPO offer documents, paving the way for the launch of its $1.6 billion public share sale, which is expected to become Africa’s largest-ever initial public offering.
Aliko Dangote, who owns the 700,000 barrel-per-day (bpd) facility, led the sign-off ceremony in Lagos on Monday. The event was attended by advisers and other stakeholders involved in the pan-African offering, which aims to raise approximately N2.2 trillion from investors.
The refinery has set the minimum subscription at 10 ordinary shares, equivalent to N5,250, Mr Dangote announced at the ceremony.
Lagos-based Vetiva Advisory Services Limited is coordinating the capital-raising exercise.
The development comes after the Securities and Exchange Commission (SEC) approved the offering last week. A total of 4.1 billion shares will be available for subscription at N525 ($0.40) per share.
The IPO values Dangote Refinery at nearly $50 billion. Proceeds from the offering are expected to fund an expansion that would double the refinery’s current capacity from 700,000 barrels per day to 1.4 million barrels per day.
The facility occupies a 6,180-acre site on the outskirts of Lagos.
If successfully listed, the refinery’s shares could increase the market capitalisation of the Nigerian Exchange by more than one-third later this year.
The company is also considering a cross-border listing on the Johannesburg Stock Exchange, Africa’s largest stock exchange. It is further exploring potential listings in Egypt, Kenya, Ghana and Rwanda.
In July, Dangote Refinery raised $2.5 billion through a private placement involving institutional investors and high-net-worth individuals. The transaction was reportedly oversubscribed by 270 per cent.
Some investors who were unable to secure shares during the private placement could potentially participate in the public offering. Interest in the IPO had already grown significantly across Nigeria even before regulatory approval, prompting the SEC in June to halt marketing activities linked to the share sale.
The regulator’s decision followed reports that several retail investors, including people with limited knowledge of equity investing, had begun opening trading accounts in anticipation of the IPO.
Investor interest is also expanding among major institutional players. Abu Dhabi National Oil Company (ADNOC), according to Bloomberg, has reportedly opened discussions with Dangote Refinery about acquiring a stake.
Bloomberg, citing sources familiar with the matter, also reported that Dangote Refinery had received approaches from other major investors.
The Dangote Refinery IPO, scheduled to launch on 14 September, is expected to benefit from increased foreign portfolio investment following Nigeria’s return to frontier market status under FTSE Russell.
Nigeria had spent nearly three years under unclassified market status, a situation that discouraged some international investors from participating in the country’s capital market.
An IPO of this scale could also provide a blueprint for other large Nigerian companies seeking to become publicly listed businesses and gain greater access to capital market financing.
NNPC Limited, Nigeria’s state-owned energy company, has considered an IPO since 2021, following its transition to limited liability status. The company revived discussions around a potential listing last November.
For NNPC Limited, whose public image has faced criticism over transparency and the publication of its financial accounts, Dangote Refinery’s public offering could provide a useful example of how a major Nigerian company can approach a large-scale market listing.
Dangote Refinery, which began production in January 2024, has continued to strengthen its position in the international energy market.
In June, the refinery overtook the United States to become the largest external supplier of jet fuel to Europe, a position it reportedly maintained in July.
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