Dangote refinery IPO to open in 12 days

Aliko Dangote, the President of Dangote Industries Limited, announced that the initial public offering (IPO) of the Dangote refinery will take place within the next 10 to 12 days. The refinery, Africa's largest, is expected to raise approximately $5 billion through the IPO, which could be the largest public offering on the continent.

Dangote expressed a desire to double the refinery's capacity to 1.4 million barrels per day. Currently, the Lagos-based refinery operates at full designed capacity of 650,000 barrels per day and has recently exceeded that mark, reaching 700,000 barrels per day in tests. Despite Dangote not disclosing specific margin figures for the plant, refiners worldwide have reported stronger profits due to the instability in the Middle East, prompting buyers to seek alternative fuel sources.

During his trip to Botswana, Dangote also discussed further expansion plans for his industrial empire. Dangote Cement is set to undergo a secondary listing on the London Stock Exchange in October, potentially attracting a wider range of international investors. Additionally, Dangote revealed a proposed refinery expansion in Kenya, a partnership with East African governments to supply refined fuel to the region and reduce dependence on imports.

This new refinery would represent Dangote's largest refining venture outside Nigeria, with construction expected to take up to three years.