Nigeria’s Dangote oil refinery closes ‘historic’ IPO
The IPO for the Lagos-based Dangote Petroleum Refinery was initially due to close on Oct 13 but was extended by two weeks to allow more Africans to participate.
Nigeria's Dangote Petroleum Refinery has successfully concluded its record-breaking initial public offering (IPO), marking the largest such transaction on the continent. The offering, initially set to conclude on October 13, was extended by two weeks to accommodate investors from across 120 countries.
Aliko Dangote, the CEO and Africa's wealthiest individual, revealed that the company surpassed its ambitious target of USD 1.6 billion raised by an astounding three to four times. The precise amount raised remains undisclosed, but Dangote confidently asserted that the IPO was "historic."
The Dangote Refinery, located in Lagos, boasts a substantial capacity of 700,000 barrels per day. The company has set its sights on doubling its output to 1.4 million barrels daily, potentially rendering it the world's largest refinery, outpacing the Jamnagar refinery in India.
The IPO attracted interest from all 54 African nations, as well as five other continents, underscoring the global appeal and confidence in the refinery's future. Dangote emphasized that the offering allowed investors from every African country and every inhabited continent to participate in the opportunity to own a stake in this significant African industrial enterprise.
In July, the refinery secured USD 2.5 billion in investment from private investors. Moreover, the company recently broke ground on a planned USD 16 billion refinery on Kenya's Lamu island, with a projected capacity of 700,000 barrels per day. According to an April report by the Africa Finance Corporation, Africa currently imports over 70% of its refined fuel.
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