Dangote Refinery Signs IPO Papers, Unveils US$14.3 Billion Plan to Double Capacity

Dangote Refinery finalized the procedures for its IPO on Monday in Lagos and unveiled a plan to increase its capacity to 1.4 million barrels per day by 2029, at a cost of US$14.3 billion. The share sale, starting on September 14, would be the largest in African history, with the company offering 4.1 billion shares at N525 each (approximately US$0.40), raising N2.15 trillion (about US$1.63 billion) if fully subscribed.

The offer will close on October 13, and the shares are expected to trade by late November. Two safeguards are in place: underwriters have committed US$400 million and a greenshoe option, allowing the refinery to issue up to 30% more shares if demand exceeds supply, subject to regulatory approval. The refinery's five-year plan to double its capacity has already generated significant profit, with an after-tax profit of US$1.82 billion in the first half of 2026, following a US$476 million loss in 2025.

The refinery has already reshaped Nigeria's fuel market and is exploring potential investments from other countries like the United Arab Emirates. The IPO aims to raise funds for expansion and to provide opportunities for retail investors, including Nigerians, the diaspora, and African buyers. If successful, the listing could make the refinery the dominant stock in Lagos and serve as a national economic infrastructure, allowing citizens to directly assess its performance.