Dangote refinery IPO to open within 12 days

The much-anticipated initial public offering of the Dangote refinery is expected to open within the next 10 to 12 days, according to the President of Dangote Industries Limited, Aliko Dangote.

Dangote disclosed this on Thursday while addressing investors and analysts in Botswana, according to Reuters, as he outlined plans to raise fresh capital and expand the group’s operations beyond Nigeria.

The proposed listing of the $20 billion Lekki-based refinery could raise about $5 billion, potentially making it the largest public offering ever recorded in Africa.

“The IPO will open in the next 10 to 12 days,” Dangote said, adding that the company also plans to significantly increase the refinery’s production capacity.

He said the group’s long-term objective was to double the refinery’s capacity from its current design level of 650,000 barrels per day to 1.4 million barrels per day.

The refinery, which is currently Africa’s largest, reached its designed capacity of 650,000 barrels per day in February. It has subsequently recorded output of about 700,000 barrels per day during production tests.

While Dangote Industries does not publicly disclose the refinery’s profit margins, global refining companies have recently benefited from stronger market conditions amid disruptions linked to instability in the Middle East.

Dangote also used his engagement with investors in Botswana to announce plans for other businesses within his industrial group.

Dangote Cement is expected to pursue a secondary listing on the London Stock Exchange, with the transaction potentially taking place in October. The move is aimed at giving the cement business access to a wider pool of international investors.

The billionaire also confirmed plans to expand his refining business into East Africa through a proposed refinery on Kenya’s coast.

The project is expected to be developed in partnership with governments in the region and would supply refined petroleum products to Kenya and neighbouring countries.

Dangote said the proposed Kenyan refinery would help reduce East Africa’s reliance on imported refined fuel and represents the group’s most significant refining investment outside Nigeria so far.

Construction of the facility is expected to take as long as three years once the project begins.