Dangote Refinery Plans Retail-focused IPO, Rules Out Foreign Listing for Now
Omolabake Fashogon with agency report Dangote Petroleum Refinery’s planned October Initial Public Offering (IPO), which could become Africa’s largest, is designed to let Nigerians share in the company’s growth, its CEO,
Dangote Petroleum Refinery is set to go public with an Initial Public Offering (IPO) in October, potentially becoming Africa's largest company to do so, according to CEO David Bird. The IPO is intended to help Nigerians share in the company's growth, and Bird emphasized that a foreign listing is at least three years away. The refinery has applied for a $5 billion IPO to the Securities and Exchange Commission, though the final size is not confirmed.
CEO Bird stated that they want at least three years of proven production and financial performance before considering an overseas listing, which could strengthen the valuation. London has been mentioned as a possible location for the IPO.
Bird highlighted that the company wants to drive participation in the IPO, describing it as "the people's IPO." The refinery has submitted its application for the IPO, and investor interest has been strong during pre-marketing and the July private placement. Africa Finance Corporation led a group of strategic investors in the private placement, which raised $2.5 billion and valued the refinery at around $40 billion.
Bird noted that the refinery has become Europe's largest supplier of jet fuel, benefiting from the disruption linked to the Iran war. The refinery is also Africa's primary source of gasoline and diesel, and the sole provider of jet fuel.
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