Dangote Refinery has launched its N2.2tn IPO, offering 4.1 billion shares at N525 each, with a minimum investment of N5,250 from September 14
Dangote Refinery Launches N2.2tn IPO, Sets N5,250 Minimum Investment
Dangote Petroleum Refinery and Petrochemicals Limited has formally commenced the process for its Initial Public Offering, offering 4.1 billion ordinary shares in what could become one of the biggest retail investment drives in Africa’s capital market.
The development was disclosed in a statement made available to newsheadline247 following the signing ceremony for the public offer held in Lagos on Monday.
The IPO, which is expected to open ownership of Africa’s largest single-train refinery to millions of Nigerians and other investors, is targeting about N2.2 trillion in capital.
President and Chief Executive of Dangote Group, Aliko Dangote, formally unveiled the offer alongside transaction advisers, bank executives, industry leaders and other stakeholders involved in the transaction.
Dangote said the minimum subscription had been fixed at 10 ordinary shares, priced at N525 each, putting the minimum investment at N5,250.
He said the offer was structured to encourage broad participation by retail and institutional investors and give more Nigerians an opportunity to own a stake in the refinery.
According to Dangote, the share sale goes beyond raising capital, as it is also intended to broaden ownership of one of Africa’s most significant industrial assets.
“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, it’s a legacy we are laying down, nobody will live forever,” he said.
Dangote also said ordinary Nigerians, including drivers, cleaners and housemaids, could participate in the offer and become part owners of the refinery.
Group Managing Director of Vetiva Advisory Services Limited, the lead issuing house and coordinator of the transaction, Chuka Eseka, said the launch followed approval granted by the Securities and Exchange Commission for the offer of 4.1 billion ordinary shares at N525 per share.
The offer places the valuation of Dangote Petroleum Refinery and Petrochemicals at close to $50 billion and is expected to provide funding for the planned expansion of the refinery’s production capacity from 700,000 barrels per day to 1.4 million barrels per day.
Located on a 6,180-acre complex in the Lekki Free Zone, Lagos, the Dangote Refinery is widely recognised as the world’s largest single-train refinery.
The proposed listing of the refinery on the Nigerian Exchange later this year could also have a significant impact on Nigeria’s capital market, with analysts projecting that its market value could substantially increase the exchange’s overall market capitalisation.
Investor interest in the refinery has already been demonstrated through its recent private placement. In July, the company raised $2.5 billion from institutional investors and high-net-worth individuals, with demand reportedly exceeding the offer size by 270 per cent.
Market observers believe some of the unmet demand from the private placement could translate into strong interest in the public offer.
The refinery’s public offering is scheduled to open on September 14 and comes amid renewed interest in Nigeria’s capital market following the country’s reinstatement to Frontier Market status by FTSE Russell.
The development is expected to support foreign portfolio inflows and improve international investor participation in Nigerian equities.
Market experts say a successful Dangote Refinery IPO could set a new benchmark for large-scale public offerings in Africa and encourage other major Nigerian companies to seek long-term financing through the capital market.
Since commencing production in January 2024, Dangote Refinery has rapidly expanded its presence in the international petroleum market.
The management of the refinery said the facility surpassed the United States in June to become the largest external supplier of jet fuel to Europe, a position it retained in July, further highlighting its growing role in global petroleum trade.
With the September 14 opening date approaching, the Dangote Refinery IPO is poised to become a major test of investor appetite and the depth of Nigeria’s capital market, while potentially creating millions of new shareholders in one of Africa’s most ambitious industrial projects.
