Dangote Refinery begins N2.2trn IPO, targets 10 million investors

The Dangote Petroleum Refinery and Petrochemicals Limited has commenced the process of offering 4.1 billion ordinary shares to the public in what could become one of Africa’s biggest retail investment drives.

The share offer, formally unveiled in Lagos on Monday, is expected to raise about N2.2 trillion and give as many as 10 million Nigerians and other investors an opportunity to acquire stakes in Africa’s largest single-train refinery.

President and Chief Executive Officer of Dangote Group, Aliko Dangote, said the offer was designed to expand public ownership of the refinery while making investment accessible to Nigerians across different income groups.

He said the initiative was not solely aimed at raising capital but at enabling ordinary Nigerians, including drivers, cleaners and domestic workers, to become shareholders in the energy company.

“This IPO is not only about raising capital; it is about democratizing wealth creation, broadening participation in Africa’s industrial future and giving millions of investors the opportunity to own a stake in a world-class enterprise,” Dangote said.

He added, “It’s a legacy we are laying down, nobody will live forever.”

The offer has been priced at N525 per share, with the minimum subscription fixed at 10 shares, requiring an initial investment of N5,250.

Chuka Eseka, Group Managing Director of Vetiva Advisory Services Limited, the lead issuing house and transaction coordinator, said the public offering followed approval from the Securities and Exchange Commission.

The proposed transaction values Dangote Petroleum Refinery and Petrochemicals at nearly $50 billion and is expected to support plans to double its production capacity from 700,000 barrels per day to 1.4 million barrels per day.

Located within the Lekki Free Zone on a 6,180-acre site, the facility is recognised as the world’s largest single-train refinery.

The refinery’s proposed listing on the Nigerian Exchange later this year could also have a significant impact on the country’s capital market, with analysts projecting that its addition could increase the exchange’s total market capitalisation by more than one-third.

Investor interest in the company has already been demonstrated through its recent fundraising activities. In July, the refinery secured $2.5 billion through a private placement targeted at institutional investors and high-net-worth individuals, with subscriptions reportedly exceeding the available offer by 270 per cent.

Market observers expect some of the unmet demand from the private placement to translate into strong interest in the public offer.

The IPO is scheduled to open on September 14 and comes amid renewed optimism around Nigeria’s capital market following FTSE Russell’s reinstatement of the country to Frontier Market status.

The development is expected to improve Nigeria’s attractiveness to international investors and potentially increase foreign portfolio participation in the market.

The refinery’s management also highlighted its growing position in the global petroleum industry since commercial production began in January 2024.

The company said the refinery surpassed the United States in June to become Europe’s largest external supplier of jet fuel, retaining the position in July.

Stakeholders believe the successful completion of the offer could set a new benchmark for public fundraising in Africa and encourage other large Nigerian companies to seek long-term financing through the capital market.