By Ayomide Otitoju
Dangote Petroleum Refinery is preparing to list on the Nigerian Exchange (NGX) through an Initial Public Offering (IPO) aimed at raising capital for its next phase of expansion.
Under the offer, the company will make 4.1 billion ordinary shares available at ₦525 per share, potentially raising about ₦2.15 trillion ($1.6 billion) if fully subscribed.
The Securities and Exchange Commission has approved the IPO, paving the way for what the company described as one of the largest capital-market transactions in Nigeria’s history. The listing is expected to open on September 14, according to a company official.
Proceeds from the offer will be used to expand the Lagos-based refinery’s processing capacity from its current 700,000 barrels per day operational baseline to 1.4 million barrels per day.
If achieved, the expansion would make the facility the world’s largest operating oil refinery, surpassing India’s Jamnagar refinery complex.
The IPO follows a $2.5 billion private placement completed in July. At the offer price of ₦525 per share, the refinery is valued at approximately $47 billion.
If fully subscribed, the listing could increase the total market capitalisation of the NGX by an estimated 30 to 40 per cent.
To attract institutional and retail investors, the company has proposed paying dividends in US dollars, using foreign exchange revenues generated from refined petroleum products and petrochemical exports to help shield investors from naira volatility.
The refinery currently meets more than 80 per cent of Nigeria’s domestic petrol demand. However, its long-term performance remains dependent on crude oil availability, export growth and refining margins.
Data from the Africa Finance Corporation shows that African countries spend more than $230 billion annually on imported commodities, with refined fuel accounting for over 70 per cent of regional consumption.
Dangote Group is positioning its refining operations to help address the continent’s supply deficit.
As part of its broader expansion plans, the group is also expected to break ground on a 700,000-barrels-per-day coastal refinery in Lamu, Kenya, on September 30.
The September 14 IPO is expected to provide a key test of liquidity on the domestic exchange and investor appetite for large-scale industrial assets.
