Nigeria’s Dangote Petroleum Refinery is preparing for what is expected to become Africa’s largest stock market listing, seeking to raise about $5 billion through an initial public offering (IPO) expected to conclude in October.
the refinery, majority owned by Africa’s richest man, Aliko Dangote, plans to use the proceeds to expand production capacity and support its ambition of building another large refinery in Kenya.
The 650,000 barrel per day Lagos refinery emerged as one of the biggest beneficiaries of the recent conflict in the Middle East, supplying jet fuel across Africa and to western Europe as global supply disruptions created shortages and pushed up prices.
Dangote aims to reduce Africa’s dependence on imported refined petroleum products and position the continent as a major exporter of fuel.
Pan African investor interest
The planned IPO has already attracted strong interest from investors and stock exchanges across Africa According to sources familiar with the transaction, exchanges in: South Africa, Kenya, Egypt, Ghana, Rwanda. have held discussions with the refinery’s advisers on ways their markets could participate in the offering. Kenya alone could account for as much as $500 million of the targeted capital raise, with strong demand expected from institutional investors such as pension funds.
A second source said Dangote Petroleum Refinery & Petrochemicals FZE has already submitted its IPO application to Nigeria’s Securities and Exchange Commission and is expected to receive regulatory approval within weeks, allowing a prospectus to be published in September.
Valuation attracts attention
While the final valuation has not been confirmed, a private placement completed last month valued the refinery at approximately $40 billion, making it one of Africa’s most valuable privately owned industrial assets.
Industry analysts, however, note that such a valuation would significantly exceed those of comparable international refiners.
For comparison:
- Turkey’s Tupras, with a similar refining capacity across four refineries, has a market value of about $12 billion.
- U.S. listed HF Sinclair, which has a refining capacity of 678,000 barrels per day, is valued at around $16 billion.
The refinery did not immediately comment on the proposed valuation or IPO plans.
Nigerian listing with regional participation
The primary listing will take place on the Nigerian Stock Exchange.
Although no dual listing is currently planned, regional investors may be able to participate through structured investment products such as global depositary receipts or exchange traded instruments linked to the Nigerian shares.
Nigeria’s stock exchange generally requires a minimum public float of 20 percent, although exceptions have previously been granted. Dangote Cement, another company within the Dangote Group, currently has a public float of just over 12 percent.
Expansion plans
Construction of the refinery, which cost about $20 billion, was completed in 2024, with the facility reaching full production capacity earlier this year.
Nigeria’s state oil company, NNPC, owns just over seven percent of the refinery.
Dangote has previously announced plans to increase production capacity to 1.4 million barrels per day and is also pursuing plans for a refinery project on Kenya’s coast in partnership with East African governments.
Sources said investors will have the option of subscribing in either Nigerian naira or U.S. dollars.
The IPO reflects Dangote’s long stated ambition of creating African industrial champions financed by African capital, while strengthening the continent’s energy security through local refining capacity.
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