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By Ayo Kehinde
The Dangote refinery has completed the approval of its offering documents, paving the way for its $1.6 billion initial public offering, which is expected to open next week.
The signing ceremony was presided over on Monday in Lagos by Aliko Dangote, owner of the 700,000 barrel per day refinery, and was attended by consultants and other parties involved in the pan-African bid.
Dangote revealed that the minimum subscription would be 10 ordinary shares at ₦525 each, meaning investors can participate in the offering with ₦5,250.
Vetiva Advisory Services Limited is coordinating the capital increase.
The development follows the Securities and Exchange Commission’s approval of the offering last week. A total of 4.1 billion shares will be offered to investors at ₦525 per share.
The offering values the Dangote refinery at nearly $50 billion and is expected to raise around ₦2.2 trillion from investors.
The company plans to use the proceeds to double the refinery’s current capacity to 1.4 million barrels per day.
The expansion would further increase the importance of the refinery, which operates on a 6,180-acre site in the Lekki area of Lagos.
A successful listing could also significantly increase the market capitalization of the Nigerian Stock Exchange when the shares are eventually admitted to trading.
The company is also considering international listings, including a potential listing on the Johannesburg Stock Exchange, while Egypt, Kenya, Ghana and Rwanda are also under consideration.
Investor interest in the refinery predates the public offering.
In July, the company raised $2.5 billion through a private placement involving institutional investors and high-net-worth individuals. The placement was reportedly oversubscribed by 270%.
Some of the unmet demand from that transaction could spill over into the public offering as investors seek exposure to one of Africa’s largest industrial projects.
The interest has also extended beyond Nigerian investors. Bloomberg reported on Monday that Abu Dhabi National Oil Company (ADNOC) had opened talks with the Dangote refinery about potentially acquiring a stake in the business.
The report, citing people familiar with the matter, said the refinery has also received contacts from other major investors.
The Securities and Exchange Commission previously halted marketing activities around the proposed IPO in June after reporting intense interest from individuals, including potential investors opening trading accounts in anticipation of the offering.
The September 14 launch comes as Nigeria prepares to regain greater visibility among international investors following FTSE Russell’s decision to restore the country to its frontier market classification.
For the Nigerian capital market, the Dangote refinery IPO could become an important test to gauge investor appetite and the market’s ability to absorb large-scale equity offerings.
It could also provide a model for other major Nigerian businesses seeking to raise long-term capital through public listings.
NNPC Limited, for example, has been considering an IPO since its transition to a private limited company, with discussions about a potential listing resuming in recent years.
Beyond the capital market implications, the growing activities of the Dangote refinery have already strengthened Nigeria’s position in the global petroleum products market.
The refinery, which began production in January 2024, became Europe’s largest external supplier of jet fuel in June and maintained that position in July.
With the IPO now upon us, investors will be looking not only at demand for the shares, but also whether the capital raise can provide the funding needed to support the refinery’s next phase of expansion.
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