Africa’s richest man, Aliko Dangote, has nearly completed a $2.5 billion private share placement for Dangote Petroleum Refinery & Petrochemicals FZE, paving the way for what could become Africa’s largest initial public offering (IPO).
According to a Bloomberg report published on Friday, the company sold a stake of up to six per cent, valuing the Lagos-based refinery at about $40 billion. The transaction reportedly attracted strong investor appetite, with demand reaching approximately $4 billion, well above the shares offered.
Sources familiar with the deal said the fundraising was carried out in phases. About $2 billion was initially raised before an additional $500 million, largely backed by regional institutional investors, was secured.
Dangote Industries declined to comment on the transaction.
The latest fundraising follows a recent $750 million debt offering for the refinery, which currently processes around 700,000 barrels of crude oil per day at its Lekki facility.
Sources said the refinery is targeting a public listing as early as August, subject to market conditions and regulatory approvals. The IPO is expected to raise an additional $1.5 billion to $2 billion, making it one of the biggest capital market transactions ever undertaken in Africa.
The company is also prioritising African participation in both the private placement and the planned IPO as part of Dangote’s broader vision of increasing regional ownership of major industrial assets.
The public offer is expected to be marketed to Nigerian, African and international retail investors to encourage broad public participation.
Proceeds from the fundraising will be used to expand the refinery’s processing capacity from 700,000 barrels per day to 1.4 million barrels per day by 2028, a move that would position the facility among the world’s largest refining complexes.
The expansion comes amid shifting global energy markets, with many countries seeking alternative fuel suppliers due to geopolitical disruptions.
Commissioned in 2023, the Dangote Petroleum Refinery is Africa’s largest single-train refinery and one of the biggest globally. It was built to reduce Nigeria’s dependence on imported refined petroleum products despite the country’s status as Africa’s largest crude oil producer.
Since beginning commercial operations, the refinery has supplied petrol, diesel, aviation fuel and other petroleum products to the domestic market while expanding exports across West Africa and beyond. Its operations have also helped reduce Nigeria’s fuel import bill and ease pressure on foreign exchange demand.
The planned IPO marks another milestone in Dangote’s effort to broaden ownership of the refinery, which was financed through shareholder equity, bank loans and debt capital market issuances. If completed, the listing is expected to open ownership of one of Africa’s most valuable industrial assets to both retail and institutional investors.
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