Dangote Petroleum Refinery and Petrochemicals Limited has formally commenced the process of its Initial Public Offering (IPO), offering 4.1 billion ordinary shares in a landmark move expected to attract up to 10 million subscribers.
The public offer, which could become one of Africa’s largest retail investment drives, is designed to broaden public ownership of one of the continent’s most strategic energy assets while deepening liquidity in Nigeria’s capital market.
At the signing ceremony held in Lagos on Monday, President and Chief Executive of Dangote Group, Aliko Dangote, unveiled the offer alongside transaction advisers, bank executives, industry leaders and other stakeholders involved in the share sale.
Dangote said the IPO is expected to raise approximately N2.2 trillion, making it one of the most ambitious capital-raising exercises by a private African company.
The minimum subscription has been fixed at 10 ordinary shares at N525 per share, translating to an entry investment of N5,250.
According to Dangote, the offer was deliberately structured to enable Nigerians across different income groups to participate in the ownership of the refinery.
“This IPO is not only about raising capital; it is about democratizing wealth creation, broadening participation in Africa’s industrial future and giving millions of investors the opportunity to own a stake in a world-class enterprise,” he said.
He added that drivers, cleaners, housemaids and other ordinary Nigerians should have the opportunity to become shareholders in the refinery.
“It’s a legacy we are laying down; nobody will live forever,” Dangote said.
The Group Managing Director of Vetiva Advisory Services Limited, the lead issuing house and coordinator of the transaction, Chuka Eseka, said the launch followed the recent approval granted by the Securities and Exchange Commission (SEC).
He said the approved offer comprises 4.1 billion ordinary shares priced at N525 each.
At that price, the public offering places the valuation of Dangote Petroleum Refinery and Petrochemicals Limited at close to $50 billion.
The proceeds are expected to support the expansion of the refinery’s production capacity from its current 700,000 barrels per day to 1.4 million barrels per day.
Located within the Lekki Free Zone on a 6,180-acre complex, the Dangote Refinery is described as the world’s largest single-train refinery.
The refinery’s proposed listing on the Nigerian Exchange later this year could significantly alter the country’s capital market, with analysts projecting that its market value could increase the exchange’s total market capitalisation by more than one-third.
Investor interest in the refinery has already been demonstrated through recent fundraising activities.
In July, the company raised $2.5 billion through a private placement targeted at institutional investors and high-net-worth individuals. Demand reportedly exceeded the offer size by 270 per cent.
Market observers expect some of the unmet demand from the private placement to spill over into the public offering.
The IPO is scheduled to open on September 14 and comes amid improving investor sentiment towards Nigeria following the country’s reinstatement to Frontier Market status by FTSE Russell.
The development is expected to support foreign portfolio inflows and strengthen international participation in Nigeria’s capital market.
Market experts said a successful Dangote Refinery IPO could set a new benchmark for large-scale public offerings in Africa and encourage other major Nigerian companies to convert to public ownership and access long-term capital through the stock market.
Since commencing production in January 2024, the refinery has rapidly expanded its footprint in the international energy market.
The Managing Director of Dangote Petroleum Refinery said the facility surpassed the United States in June to become the largest external supplier of jet fuel to Europe, a position it maintained in July.
He said the development underscored the refinery’s growing importance in international petroleum trade and its potential role in strengthening Africa’s energy security.
