Dangote refinery IPO to open in 12 days

Dangote Industries Limited's President, Aliko Dangote, announced that the initial public offering (IPO) for the Dangote refinery will commence within the next 10 to 12 days. The $20bn refinery, Africa's largest, aims to raise approximately $5bn through the IPO, potentially becoming the continent's largest public offering. Dangote expressed his ambition to double the refinery's capacity to 1.4 million barrels per day, a goal currently underway.

The Lagos-based facility, already the continent's largest, reached its full design capacity of 650,000 barrels per day in February and has since surpassed that, reaching 700,000 barrels per day in tests. Dangote did not disclose margin figures for the plant, but global refiners have been experiencing stronger profits due to Middle East instability prompting buyers towards alternative fuel sources.

During his visit to Botswana, Dangote utilized the opportunity to outline broader plans for his industrial empire. Dangote Cement, a subsidiary, is scheduled for a secondary listing on the London Stock Exchange, likely in October, expanding its reach to international investors. Additionally, Dangote confirmed plans for a new refinery in Kenya, a significant expansion outside of Nigeria, alongside his partner East African governments to supply refined fuel to the region and reduce reliance on imports. The construction of this new refinery is projected to take up to three years.