Dangote Refinery IPO coming this month
Africa’s richest man, Aliko Dangote, said the firm would seek to raise $5 billion, potentially making it the continent’s biggest-ever public offering.
The initial public offering (IPO) of Africa's largest oil refinery, the Dangote Refinery, is set to launch within the next 10 to 12 days, according to Aliko Dangote's announcement. Dangote revealed this information to investors and analysts in Botswana during his visit to the Southern African nation. The anticipated IPO will raise approximately $5 billion, potentially making it the largest public offering in Africa.
The refinery, which reached full nameplate capacity in February, is expected to double its capacity to 1.4 million barrels per day, solidifying its position as a significant supplier of refined petroleum products to African and international markets.
The IPO follows a $2.5 billion private placement secured by the refinery, which bolstered its financial position before the public offering. Meanwhile, Dangote Cement Plc, another flagship business of the Dangote Group, is expected to list on the London Stock Exchange in October, providing international exposure to the cement company.
Furthermore, the Dangote Group plans to construct a new refinery in Kenya in collaboration with East African governments, aiming to supply refined petroleum products to the country and neighboring nations. This project, which will take up to three years to complete, is set to reduce East Africa's reliance on imported refined fuels.
The Dangote Refinery IPO has garnered significant global interest, with investors securing a $400 million underwriting commitment from Marob Strategies and Consulting DIFC Ltd. and Lilium Capital Group just last month. The refinery is valued at $39.1 billion, based on the Information Memorandum released. Dangote Refinery's CEO, David Bird, stated that the company will not pursue a foreign stock market listing for at least three years, prioritizing the Nigerian IPO.
Bird explained that the refinery aims to establish a robust operating and financial track record before entering international capital markets.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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