SEC Approves Dangote Refinery's N2.15 Trillion IPO

The Nigeria Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of Dangote Refinery, which is anticipated to be Africa's largest share sale, potentially raising about N2.15 trillion if fully subscribed. The Dangote Group announced that the IPO will offer 4.1 billion ordinary shares at N525 per share.

The SEC has also registered 120.13 billion existing ordinary shares in the refinery, valuing it at approximately $47 billion. The refinery, located on the outskirts of Lagos, has a capacity of 650,000 barrels per day and was built at an estimated cost of $20 billion.

It has significantly impacted Nigeria's fuel market and expanded its exports to Africa and Europe. Ahead of the IPO, Dangote Refinery raised $2.5 billion through a private placement and secured underwriting commitments.

The IPO is expected to open within 10 to 12 days and aims to provide greater access to retail and institutional investors. Dangote's long-term goal includes doubling the refinery's capacity to 1.4 million barrels per day.