Dangote Refinery Launches $1.6bn IPO at ₦525 Per Share

On September 7, 2023, Dangote Refinery announced the opening of its $1.6 billion initial public offering (IPO) at ₦525 per share, with a minimum subscription of 10 shares, totaling ₦5,250. The endorsement ceremony was led by Aliko Dangote in Lagos and involved various advisers.

The Securities and Exchange Commission approved the offer, which will see 4.1 billion shares offered, valuing the refinery at nearly $50 billion and aiming to raise approximately ₦2.2 trillion. The proceeds will be used to double the refinery's capacity from 700,000 to 1.4 million barrels per day.

The company is also exploring international listings, including on the Johannesburg Stock Exchange. Prior to the public offer, Dangote Refinery raised $2.5 billion through a private placement, which was oversubscribed by 270 percent.

The IPO is anticipated to significantly impact Nigeria's capital market, especially following FTSE Russell's decision to restore Nigeria's frontier-market classification.