Dangote Plans 10% Stake Sale in $20bn Refinery IPO

Aliko Dangote, Africa's richest man, has announced plans to sell a 10% stake in the $20 billion Dangote Petroleum Refinery through a public offer (IPO) anticipated in 2026. This announcement was made during an event organized by the Atlantic Council in Washington DC.

The initiative aims to attract long-term investments and enhance participation in African capital markets, with shareholders expected to receive dividends in US dollars. Although financial details of the offer have not yet been released, the refinery, which has a capacity of 650,000 barrels per day, is the largest in Africa and has recently reached full operational capacity.

The refinery is set to play a stronger role in the global fuel supply chain, including an increase in jet fuel exports to Europe. The Dangote Group has appointed Stanbic IBTC Capital, Vetiva, and FirstCap as advisors for this transaction.

Additionally, Dangote revealed a broader expansion strategy involving a $40 billion investment over the next five years, which includes increasing refinery output and expanding mining projects in the Democratic Republic of Congo and Zambia.