Dangote refinery IPO to open within 10 to 12 days

The Dangote refinery’s long-awaited public offering is expected to open within 10 to 12 days, Aliko Dangote said while speaking to investors and analysts in Botswana.

The $20 billion facility, located in Lagos and described as Africa’s largest refinery, is expected to raise about $5 billion through the IPO. If completed on that scale, the offering could become the largest public offering on the continent.

Dangote said the group ultimately wants to double the refinery’s capacity to 1.4 million barrels per day. The plant reached its designed capacity of 650,000 barrels per day in February and has since tested output above that level, reaching 700,000 barrels per day.

The company does not publish margin figures for the refinery. Refiners worldwide have recently reported stronger profits as instability in the Middle East pushed buyers toward alternative fuel supplies.

Dangote used his Botswana visit to outline other plans for the industrial group. Dangote Cement is expected to pursue a secondary listing on the London Stock Exchange, likely in October, to give the company access to a broader pool of international investors. The group also plans a refinery on Kenya’s coast, in partnership with East African governments, to supply refined fuel to Kenya and neighboring countries. Construction is expected to take up to three years, making it Dangote’s largest refining investment outside Nigeria.

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So our dream is that we want to make sure we double the capacity of the refinery, which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days.