Nigeria's SEC approves about $1.6bn Dangote Refinery IPO

Nigeria's Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of Dangote Group's refinery business, marking the start of Africa's largest-ever share sale. The IPO could raise approximately 2.15 trillion naira ($1.63 billion) if fully subscribed, with the company selling 4.1 billion ordinary shares at a price of 525 naira per share.

Reuters first reported the terms early on Friday. The approval comes after the SEC registered the refinery company's existing 120.13 billion ordinary shares, implying a valuation of around $47 billion. The 650,000-barrel-per-day refinery, built at a cost of around $20 billion near Lagos, has become a major benefactor of supply disruptions stemming from the Iran war, exporting jet fuel across Africa and into Europe.

With SEC approval secured, the refinery is set to embark on a historic public offering that could broaden investor participation in one of Nigeria's most transformative industrial projects. The offer's order book opens on September 14. The refinery's majority shareholder, Aliko Dangote, is raising funds to double capacity to 1.4 million barrels per day, having secured a $400 million underwriting commitment for the IPO. The IPO includes a "greenshoe" option to sell an additional 15% of shares if demand exceeds supply.