Dangote Petroleum Refinery is preparing for what could become Africa’s biggest Initial Public Offering (IPO), with plans to raise up to $2 billion in a public listing expected later this year.
According to a Bloomberg report, the proposed IPO has already attracted massive interest from institutional investors, high-net-worth individuals and retail investors across Nigeria and beyond, even before the official launch.
The report said the refinery could be valued at about $40 billion, with some analysts projecting a valuation of up to $50 billion.
Bloomberg reported that investors have already indicated interest worth nearly $2 billion ahead of the planned public offering, highlighting strong confidence in the refinery’s future.
Dangote Refinery plans to sell around 10 percent of its equity, with the shares expected to be listed on the Nigerian Exchange Limited (NGX) and other African stock exchanges.
Located in the Lekki Free Trade Zone in Lagos, the refinery has grown into one of Africa’s largest industrial projects since beginning operations in 2024.
The facility reportedly processes close to 700,000 barrels of crude oil per day, helping Nigeria reduce its dependence on imported petroleum products while expanding exports of refined fuel to other African countries.
Bloomberg also reported that the refinery has become one of the world’s most profitable refining businesses, posting an estimated 23 percent EBITDA margin last year.
The company had earlier tested investor appetite through a private placement, attracting about $2 billion in subscriptions despite initially seeking to raise only $1 billion.
Although Nigeria’s Securities and Exchange Commission (SEC) temporarily suspended public marketing activities surrounding the IPO over concerns about promotional campaigns, investor demand has remained strong.
Dangote Refinery confirmed that discussions on the final structure, timing and size of the offering are still ongoing.
Finance Minister Taiwo Oyedele welcomed the anticipated listing, saying wider public participation could boost wealth creation and deepen Nigeria’s capital market.
If completed, the IPO is expected to become one of the largest capital-raising exercises ever witnessed on the African continent.
Source: Bloomberg
