Africa’s richest businessman, Aliko Dangote, has reportedly secured about $2.5 billion through a private share sale for the Dangote Petroleum Refinery as the company prepares for a public listing expected to be one of the largest in Africa.
According to reports, investors purchased up to six per cent of the refinery, placing the company’s valuation at roughly $40 billion. The offer attracted stronger-than-expected interest, with demand reportedly reaching around $4 billion, well above the amount of shares available.
Sources familiar with the transaction said the fundraising was completed in stages, beginning with an initial sale of about $2 billion before an additional $500 million was raised, largely from institutional investors within Africa.
The refinery’s management did not publicly comment on the reported transaction.
The latest equity raise follows a recent $750 million debt financing secured by the company. Located in Lekki, Lagos, the refinery currently processes about 700,000 barrels of crude oil per day, making it the largest single-train refinery in Africa.
Industry sources say the company is targeting an initial public offering as early as August, subject to regulatory approvals and market conditions. The planned IPO could generate another $1.5 billion to $2 billion in fresh capital.
The fundraising is expected to support the refinery’s expansion plans, with the company aiming to increase processing capacity from 700,000 barrels per day to 1.4 million barrels per day by 2028.
The report also indicated that Dangote is prioritising participation by African investors in both the private placement and the planned public offering as part of efforts to broaden regional ownership of one of the continent’s biggest industrial projects.
Commissioned in 2023, the Dangote Refinery was built to reduce Nigeria’s dependence on imported refined petroleum products. Since beginning commercial operations, it has supplied petrol, diesel, aviation fuel and other petroleum products to the domestic market while expanding exports across Africa.
If completed, the planned stock market listing is expected to rank among the biggest capital market transactions on the continent, opening the refinery to both retail and institutional investors.
