The Dangote Petroleum and Petrochemicals FZE is set to hold the signing ceremony for its Initial Public Offering (IPO) in Lagos on Monday, marking the refinery’s first public offer since its inauguration in 2023.
The ceremony will take place at Eko Hotel and Suites, Victoria Island, where the private refinery will offer 4.1 billion ordinary shares of $0.000013 each at ₦525 per share.
The event will be led by the leadership of Dangote Petroleum Refinery, headed by Aliko Dangote, President and Chief Executive of Dangote Industries Limited.
The Dangote Group said the offer could raise approximately ₦2.15 trillion ($1.6 billion) if fully subscribed.
The IPO follows nearly a decade of construction and an investment of approximately $20 billion in the refinery, located in the Lekki Free Zone in Lagos.
With a refining capacity of 650,000 barrels per day, the facility is Africa’s largest single-train refinery.
SEC Approves Offer
The Securities and Exchange Commission has approved the IPO, paving the way for what the company described as potentially one of the largest capital market transactions in Nigeria’s history.
A company official said the refinery is expected to list on the Nigerian Exchange Group (NGX) on September 14.
Proceeds from the public offer are expected to finance a major expansion of the Lagos facility, with the company targeting an increase in processing capacity from its current operational baseline of 700,000 barrels per day (bpd) to 1.4 million bpd.
If achieved, the expansion would make the refinery the largest operating oil refinery in the world, surpassing India’s Jamnagar complex.
The capital raise comes after the company completed a $2.5 billion private placement in July.
At the offer price of ₦525 per share, the refinery’s market valuation stands at approximately $47 billion.
If fully subscribed, the listing is expected to increase the total market capitalisation of the NGX by an estimated 30 to 40 per cent.
Refinery Targets Wider African Market
To attract institutional and retail investors, the company has proposed paying dividends in US dollars, using foreign exchange revenues generated from refined product and petrochemical exports to cushion investors against local currency volatility.
The refinery currently meets more than 80 per cent of Nigeria’s domestic petrol demand, although its long-term returns remain linked to crude feedstock availability, export growth and refining margins.
Data from the Africa Finance Corporation indicates that African countries spend more than $230 billion annually on imported commodities, with refined fuel accounting for more than 70 per cent of regional consumption.
The Dangote Group is positioning its refining operations to address part of the continent’s supply deficit.
As part of its broader expansion plans, the group also intends to break ground on a 700,000-bpd coastal facility in Lamu, Kenya, on September 30.
The September 14 public offering is expected to provide a major test of investor appetite for large-scale industrial assets and liquidity on Nigeria’s domestic exchange.
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