Dangote Refinery Delays Foreign Listing for Three Years

Dangote Petroleum Refinery, led by Chief Executive Officer David Bird, announced it will wait at least three years before pursuing a foreign stock market listing. This decision aims to build a strong production and financial track record to secure a higher valuation overseas.

Bird confirmed that preparations for an initial public offering (IPO) in Nigeria, scheduled for October, are on track. The IPO is expected to raise up to $5 billion and is designed to broaden local ownership, allowing Nigerians to participate in the company's growth.

The refinery, owned by Africa's richest man, Aliko Dangote, has applied to the Securities and Exchange Commission for this IPO. Bird noted that the refinery has become Europe's largest supplier of jet fuel and plans to expand its refining capacity from 650,000 barrels per day to 1.4 million barrels per day within three years.

This expansion will be funded partly through the IPO and debt, at a cost significantly lower than the original $20 billion spent on the refinery.