Dangote Seeks $1.6bn in Historic Refinery IPO

Aliko Dangote, founder of Dangote Petroleum Refinery, is set to raise about $1.6bn through Nigeria’s capital market, marking a potential record IPO in the country. The refinery plans to offer 4.1bn ordinary shares at N525 each, aiming to generate approximately N2.15tn ($1.63bn) upon full subscription, pending approval from Nigeria’s Securities and Exchange Commission (SEC).

This IPO represents a significant test of investor interest in large-scale Nigerian industrial assets. The refinery, located in Lekki, Lagos, has a current capacity of 650,000 barrels per day and aims to expand to 1.4m barrels per day, surpassing India’s Jamnagar refinery complex.

The SEC has valued the refinery at roughly $47bn based on its share capital and IPO price. The order book is expected to open on September 14, with a greenshoe option for additional shares if demand exceeds expectations.

Dangote seeks to attract both institutional and retail investors across Africa for this offering.