Dangote Refinery IPO Set to Open for Public Investment

Nigeria’s Securities and Exchange Commission has approved an initial public offering (IPO) for Dangote Petroleum Refinery and Petrochemicals, allowing the public to purchase shares in the refinery. The company plans to offer 4.1 billion ordinary shares at ₦525 each, potentially raising about ₦2.15 trillion (approximately $1.63 billion).

The IPO is scheduled to open on September 14, 2023, and close on October 13, 2023, with trading on the Nigerian Exchange expected to commence in November. This IPO is being marketed as Africa’s largest-ever share sale, targeting retail investors.

Although the refinery has been primarily a private enterprise owned by the Dangote Group, the IPO will enable public ownership. However, the 4.1 billion shares represent only a small fraction of the refinery's total 120.13 billion registered shares.

The refinery currently operates at 700,000 barrels per day and plans to double its capacity by 2029. The IPO could provide capital for expansion, but it does not guarantee lower fuel prices.