Dangote Targets $5 Billion IPO for Refinery Expansion

Dangote Petroleum Refinery & Petrochemicals FZE is targeting approximately $5 billion through an Initial Public Offering (IPO) expected to conclude in October. The proceeds will be used to expand its Lagos refinery's capacity to 1.4 million barrels per day.

The refinery has submitted an initial application to the Securities and Exchange Commission and is awaiting regulatory approval. If approved, the prospectus will be published in September ahead of the October share sale.

The IPO could become Africa's largest stock market listing, with the fundraising accounting for over four percent of the Nigerian Exchange’s All Share Index. Aliko Dangote, Africa's richest businessman, owns the refinery, which aims to reduce Africa's reliance on imported refined petroleum products.

The offering has attracted interest from capital markets across Africa, with potential contributions from Kenya's capital market estimated at $500 million. The refinery plans to make the IPO a pan-African investment opportunity, although a cross-listing on other exchanges is not planned.