The Dangote Refinery IPO is expected to open within the next 10 to 12 days, bringing Africa’s largest refinery closer to a public offering that could become one of the continent’s biggest capital-market transactions.
Dangote Industries President and Chief Executive Officer, Aliko Dangote, disclosed the timeline on Thursday while speaking to investors and analysts during a visit to Botswana. Reuters reported the comments. citeturn0news37turn0search1
The proposed offering is expected to raise substantial fresh capital for the refinery’s expansion. Earlier reports had put the potential fundraising target at about $5 billion, although Reuters reported on September 4 that the planned offer could instead raise around $1.5 billion based on a proposed sale of 4.1 billion shares at ₦525 each. citeturn0news38
The Securities and Exchange Commission has subsequently approved the proposed offering, according to a statement from Dangote Group reported by PUNCH. The approval covers 4.1 billion ordinary shares priced at ₦525 each, which could generate about ₦2.15 trillion if fully subscribed. citeturn0search16
Dangote said proceeds from the IPO would support the company’s ambition to expand the refinery’s processing capacity.
“So our dream is that we want to make sure we double the capacity of the refinery,” Dangote said, adding that the expansion would take capacity to 1.4 million barrels per day. citeturn0news37
Refinery targets major expansion
The refinery, located in the Lekki area of Lagos, has a designed capacity of 650,000 barrels per day. It reached full nameplate capacity in February and has subsequently tested output of about 700,000 barrels per day, according to Reuters. citeturn0news37
The proposed expansion would more than double the facility’s original design capacity and strengthen its position as a major supplier of refined petroleum products to Nigeria and other African markets.
The IPO preparations have followed a series of capital-raising efforts. In August, Dangote Industries announced a $1 billion underwriting programme comprising a completed $600 million private placement and a further $400 million underwriting commitment linked to the planned public offering. citeturn0search5turn0news40
The company has also been pursuing a broader Pan-African investment strategy for the refinery, while seeking to attract participation from Nigerian and international investors.
Earlier uncertainty over the IPO
The development follows months of uncertainty surrounding the proposed listing.
In June, Nigeria’s Securities and Exchange Commission warned investors about unauthorised promotions for a purported Dangote Refinery IPO, saying at the time that it had not received or approved an application for such an offering. citeturn0search6
The latest regulatory approval marks a significant change and clears the way for the formal public offering process.
Dangote has also announced plans to increase the group’s presence in international capital markets. Dangote Cement is expected to pursue a secondary listing on the London Stock Exchange in October, according to reports following his Botswana engagement. citeturn0search3
For the refinery, however, the immediate focus remains the Nigerian IPO and raising the capital required for its next phase of expansion.
The Dangote Refinery IPO is therefore set to become a major test of investor appetite for large-scale industrial assets in Nigeria, with the offering expected to open within the next 10 to 12 days following regulatory approval.
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