Dangote Refinery Plans $5 Billion IPO in October

Nigeria’s Dangote oil refinery is preparing for Africa’s largest initial public offering (IPO), targeting to raise approximately $5 billion, with the process expected to conclude in October. The refinery, primarily owned by Aliko Dangote, has benefited from selling jet fuel during the Iran war and aims to expand its capacity of 650,000 barrels per day.

The IPO has attracted interest from stock exchanges in South Africa, Kenya, Egypt, Ghana, and Rwanda, with Kenya potentially raising up to $500 million of the target. The Dangote Petroleum Refinery & Petrochemicals FZE has submitted its IPO application to Nigeria’s Securities and Exchange Commission, which is anticipated to approve it soon, allowing for a prospectus publication in September.

The IPO's target represents over four percent of Nigeria’s All Share Index, which had a total capitalization of $116 billion. A recent $2.5 billion private placement valued the refinery at around $40 billion, although this valuation is considered ambitious compared to other oil refiners.