…targets N2.15 trillion raise

The Securities and Exchange Commission has approved the launch of the IPO, with the company stating that the offering paves the way for what could become one of the largest capital market transactions in Nigeria’s history. The listing is expected to take place on September 14, according to a company official, with the signing ceremony of the Dangote Petroleum and Petrochemicals FZE Initial Public Offering in Lagos, an event expected to mark one of the most significant capital market transactions in Nigeria’s history.

The ceremony will be held at Eko Hotel and Suites, Victoria Island. It will be led by the leadership of Dangote Petroleum Refinery, headed by Aliko Dangote, President and Chief Executive of Dangote Industries Limited. At the event, the private refinery will offer 4.1 billion ordinary shares of $0.000013 each for subscription at ₦525.00 per share.

This marks the refinery’s first public offer since its inauguration in 2023, following nearly ten years of construction and an investment of approximately $20 billion. Located in the Lekki Free Zone in Lagos, the facility has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery.
Proceeds from the public float are intended to fund a massive expansion of the Lagos-based facility, raising processing capacity from its current operational baseline of 700,000 barrels per day to 1.4 million barrels per day. Achieving that target would make it the world’s largest operating oil refinery, surpassing India’s Jamnagar complex.

The capital raise follows a $2.5 billion private placement completed in July. At the offer price of ₦525 per share, the market valuation of the refinery stands at approximately $47 billion. If fully subscribed, the listing will single-handedly increase total market capitalisation on the Nigerian Exchange (NGX) by an estimated 30 to 40 per cent.
To attract both institutional and retail buyers, the company has proposed paying dividends in US dollars, leveraging foreign exchange revenues generated from refined product and petrochemical exports to buffer investors against local currency volatility.

The Dangote Refinery was commissioned in May 2023. While it currently meets more than 80 per cent of Nigeria’s domestic petrol demand, long-term returns remain tied to crude feedstock availability, export growth, and refining margins.
The Dangote Group is positioning its refining capacity to address this regional deficit.
As part of its broader footprint, the group also plans to break ground on a 700,000-bpd coastal facility in Lamu, Kenya, on September 30.

Stockbrokers are expected to provide access to the offer on their platforms once it becomes available for subscription.
The upcoming September 14 public offering will serve as a key indicator of market liquidity on the domestic exchange and investor demand for large-scale industrial assets, as Nigeria’s leading crude producer moves to reshape its position in the global refining landscape.