Dangote Petroleum Refinery’s planned public share sale has attracted applications valued at approximately N5.85tn ($4.1bn), significantly exceeding its initial fundraising target of $1.6bn.
The strong demand, reported by Bloomberg, reflects growing investor interest in the 700,000-barrel-per-day facility, with prospective shareholders reportedly applying from all 54 African countries.
Nigerian investors accounted for about $1.9bn of the subscriptions, while international investors submitted applications worth an estimated $2.1bn, according to people familiar with the transaction.
The scale of participation has reportedly reached nearly four million individual subscription applications, highlighting significant interest among retail investors.
The company had earlier set a target of attracting 10 million retail shareholders as part of its strategy to expand ownership beyond wealthy individuals and institutional investors.
Interest has also come from major institutional investors, particularly pension fund managers in Nigeria and South Africa.
South Africa’s Public Investment Corporation, which oversees approximately $220bn in pension assets for public-sector workers, reportedly requested a substantial allocation in the refinery. Nigerian pension fund managers, representing investments for about 11 million contributors, have equally sought shares in the offering.
With applications exceeding the available shares, the refinery is considering expanding the offer to accommodate more investors. A proposed 30 per cent over-allotment option could raise the total proceeds to approximately $2.1bn.
However, even with the additional allocation, foreign investor demand is reportedly higher than the shares available.
The company is expected to submit a draft share allotment announcement to the Securities and Exchange Commission this week. Regulatory approval for the distribution of shares is anticipated on November 17, with trading expected to begin after 15 business days.
Although trading could commence around December 8 based on the proposed timeline, the refinery is reportedly working towards an earlier listing before the end of November, subject to regulatory approval.
The offering is attracting attention across African financial markets, with exchanges on the continent providing arrangements for investors in different countries to participate.
The development also highlights the growing capacity of African capital markets to mobilise domestic and regional funds for large-scale industrial projects.
Owned by Africa’s richest man, Aliko Dangote, the refinery is located in the Lekki area of Lagos State. Its 700,000-barrel-per-day capacity makes it a major component of Nigeria’s drive to reduce reliance on imported petroleum products.
The public offering is expected to widen the refinery’s shareholder base, secure additional long-term investment and strengthen the role of African investors in financing major industrial developments.
