Dangote Group Initiates Registration for Refinery IPO

Aliko Dangote and his advisory team signed registration documents in Lagos on September 7 to initiate the initial public offering of Dangote Petroleum Refinery & Petrochemicals FZE. The offering follows approval from the Securities and Exchange Commission of Nigeria.

The IPO will offer 4.1 billion ordinary shares at a price of ₦525 per share. The base target is ₦2.15 trillion, or approximately $1.63 billion, with a 15% greenshoe option potentially increasing the total amount raised. The order book is scheduled to open on September 14.

CEO David Bird described the offering as a people’s IPO, intended to ensure retail investors in Nigeria and Africa can participate. There are no current plans for a foreign listing, with such a possibility deferred for at least three years. Consequently, early liquidity will be concentrated on the Nigerian Exchange.

The refinery, which began operations in 2024, currently processes 650,000 barrels of crude per day, with testing reaching 700,000 barrels per day. Proceeds from the IPO are intended to fund an expansion project aimed at doubling capacity to 1.4 million barrels per day.

The refinery has an estimated valuation between $39 billion and $47 billion, following an initial construction cost of approximately $20 billion. A previous private placement for the business raised $2.5 billion and included $1 billion in underwriting support.