Dangote refinery signs IPO documents ahead of Africa’s biggest share sale

The Dangote oil refinery has signed the documents for an initial public offering that could become Africa’s biggest share sale. The offering is scheduled to run from September 14 to October 13, according to a presentation at a ceremony in Lagos.

The company plans to offer 4.1 billion ordinary shares at 525 naira each. If fully subscribed, the sale could raise about 2.15 trillion naira. The refinery may issue up to 30% more shares if demand exceeds the base offer, subject to regulatory approval.

The listing will put investor appetite to the test for one of Africa’s most ambitious industrial projects. Built on the outskirts of Lagos at a reported cost of about $20 billion, the refinery can process 700,000 barrels per day. Its exports include jet fuel shipped across Africa and to Europe.

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This is not a Nigerian listing. It’s an African listing, and we are going to pay everybody, including the Nigerian listing, in dollar terms.

The IPO is intended to support a planned doubling of capacity to 1.4 million barrels per day. The company has already secured a $400 million underwriting commitment. Aliko Dangote, who owns the refinery as part of his wider business empire, said he hoped it would become the world’s largest single-train refinery by 2028.

Nigeria’s Securities and Exchange Commission approved the IPO on Friday and registered the company’s existing 120.13 billion ordinary shares. Reuters calculations cited in the article imply a valuation of about $47 billion. The company said the offering could broaden investor participation in one of Nigeria’s most transformative industrial ventures.

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With SEC approval now secured, the refinery is poised to embark on a historic public offering that could significantly broaden investor participation in one of Nigeria’s most transformative industrial ventures.