Dangote Petroleum Refinery is planning to raise about $5 billion through an initial public offering (IPO) expected in October, with the funds set to finance the expansion of its Lagos refinery to a processing capacity of 1.4 million barrels per day.
According to sources familiar with the transaction, the company has submitted a preliminary application to Nigeria’s Securities and Exchange Commission and is awaiting regulatory approval. If cleared, the refinery is expected to release its prospectus in September before launching the share sale the following month.
The planned listing is projected to become the largest IPO ever undertaken in Africa. While the company is targeting a $5 billion raise, the final amount will depend on the level of approval granted by regulators.
The expansion forms part of Dangote Refinery’s broader strategy to increase domestic refining capacity, reduce Africa’s dependence on imported petroleum products and strengthen the continent’s role as a supplier of refined fuels.
People involved in the process also disclosed that the company is exploring the possibility of developing a refinery on Kenya’s coastline in collaboration with East African governments.
The IPO has reportedly drawn attention from several African capital markets, with exchanges in countries including South Africa, Kenya, Egypt, Ghana and Rwanda engaging with the refinery’s advisers over possible investor participation.
Rather than pursuing listings on multiple exchanges, the company is considering structured investment products that would allow investors outside Nigeria to participate while keeping the primary listing on the Nigerian Exchange.
The proposed public offering follows a $2.5 billion private placement completed in July, during which a six per cent stake in the refinery was sold, placing the company’s valuation at about $40 billion.
The refinery, built at an estimated cost of $20 billion, began operations in 2024 and reached full production earlier this year. The Nigerian National Petroleum Company Limited (NNPC Ltd.) owns slightly more than seven per cent of the facility.
Dangote had previously announced plans to increase the refinery’s capacity to 1.4 million barrels per day, and sources say investors in the IPO may be given the option to subscribe and receive returns in either naira or US dollars.
The company aims to position the offering as a major African investment opportunity, enabling investors across the continent to participate in one of the region’s largest industrial projects. Neither Dangote Refinery nor its representatives officially commented on the planned transaction.
