Dangote Petroleum Refinery & Petrochemicals FZE is seeking to raise about $5 billion through an Initial Public Offering expected to close in October, with the funds earmarked to expand the capacity of its Lagos refinery to 1.4 million barrels per day.
The proposed transaction could rank as Africa’s largest stock market listing, according to a Reuters report. Sources familiar with the deal said the company has submitted an initial application to the Securities and Exchange Commission and is awaiting regulatory approval in the coming weeks. Subject to clearance, the prospectus is expected to be published in September ahead of the October share sale.
One source noted that the fundraising target is $5 billion, although the final amount will depend on the approval granted by the Nigerian regulator. The primary listing will be on the Nigerian Exchange. If successful, the issue would represent just over four per cent of the NGX All-Share Index, whose market capitalisation stood at approximately $116 billion on Tuesday.
Valuation and Previous Fundraising
The refinery, owned by Africa’s richest businessman, Aliko Dangote, completed a $2.5 billion private placement last month for a six per cent stake, valuing the facility at about $40 billion. That valuation exceeds those of some listed global refiners. Turkey’s Tupras, which operates a combined refining capacity comparable to Dangote’s across four plants, has a market value of roughly $12 billion, while United States-listed HF Sinclair, with a capacity of 678,000 barrels per day, is valued at around $16 billion.
The Lagos refinery cost about $20 billion to build. It commenced operations in 2024 and reached full production capacity earlier this year. The Nigerian National Petroleum Company Limited holds a stake of just over seven per cent.
Expansion Plans and Pan-African Ambition
Proceeds from the IPO will be used to increase refining capacity as part of efforts to reduce Africa’s reliance on imported petroleum products and strengthen the continent’s position as a fuel exporter. In April, Dangote announced plans to raise the refinery’s capacity to 1.4 million barrels per day.
The company is also considering the construction of a refinery along the Kenyan coast in partnership with East African governments. Investors participating in the IPO will have the option of subscribing and receiving returns in either naira or US dollars.
Stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have held discussions with the refinery’s advisers in recent months. One source said Kenya’s capital market could contribute as much as $500 million, citing strong demand from institutional investors, particularly pension funds.
Rather than pursuing cross-listings, the offering is designed as a pan-African investment opportunity. Investors outside Nigeria may gain access through structured products such as global depositary receipts or exchange-traded instruments that mirror the shares listed on the Nigerian Exchange and carry the right to future dividends.
Dangote aims for the public offering to become “an African champion,” enabling capital markets across the continent to participate in financing one of Africa’s largest industrial assets. Both sources requested anonymity because discussions remain confidential. Attempts to obtain comments from Dangote were unsuccessful.
