Dangote Petroleum Refinery is targeting about $5 billion from an Initial Public Offering to finance the expansion of its Lagos facility and increase production capacity to 1.4 million barrels per day.
The planned share sale, expected in October subject to regulatory approval, could become Africa’s biggest IPO. The refinery has reportedly submitted an initial application to the Securities and Exchange Commission, with a prospectus expected in September.
The News Chronicle reports that the fundraising would support Dangote’s plans to strengthen refining capacity and reduce Africa’s dependence on imported petroleum products.
The company is also exploring a possible refinery project along Kenya’s coast in partnership with East African governments. Capital markets in South Africa, Kenya, Egypt, Ghana and Rwanda have reportedly shown interest in the proposed offering.
Kenyan investors could potentially contribute up to $500 million, driven by interest from institutional investors including pension funds.
The IPO follows a $2.5 billion private placement completed recently for a 6 per cent stake, valuing the refinery at about $40 billion.
Built at a cost of roughly $20 billion, the refinery began operations in 2024 and reached full production earlier this year. Dangote is seeking to turn the offering into a pan African investment opportunity, with investors potentially receiving returns in naira or US dollars.
