Dangote launches Africa’s biggest refinery IPO, targeting retail investors

Nigeria's Dangote Group is planning to offer 4.1 billion shares in its oil refinery, aiming to raise 2.15 trillion naira ($1.6 billion). This would make it Africa's largest initial public offering to date. Here are some details about the transaction:

The Dangote Group, led by Africa's wealthiest individual Aliko Dangote, constructed the 700,000 barrels-per-day facility over a decade for $20 billion. Dangote revealed his intention to publicly sell shares in the refinery last year, as the plant reached full capacity this year.

The company plans to price the shares at 525 naira each, which would value the refinery at around 63 trillion naira ($47.59 billion). The refinery, known as the Dangote Petroleum Refinery & Petrochemicals FZE, will be listed on Nigeria's principal stock exchange.

Executives from the refinery insist the valuation is supported by rising demand for petroleum and fertiliser products in Africa and internationally, as well as its strategic location near crude supplies. Nigeria is Africa's leading oil producer.

In July, Dangote sold $2.5 billion worth of shares through a private placement, attracting investors such as the Africa Finance Corporation. The offering targets retail investors, with a minimum subscription limit of just 10 shares. Investors can apply and pay for their shares through digital platforms to make the process more accessible to locals and expatriates.

Dangote intends to use the raised funds for future expansion. Specifically, the company aims to double the refinery's capacity to process 1.4 million barrels-per-day over the next three years. The group also hopes to grow its stake in the refinery and improve its access to capital markets in the future.

Dangote Group has not commented on the prospectus, which is set to be published on Monday. The refinery has flourished amidst disruption caused by the Middle East conflict, providing secured markets for its refined petroleum products in Africa and Europe. The refinery generated a net profit of $1.82 billion in the first half of the year on revenue exceeding $13 billion, compared to a loss of $476 million throughout 2025.

Investors will have until October 13 to apply for shares, after which the books will close. Trading for the shares is expected to commence in late November.