The highly anticipated initial public offering (IPO) of Dangote Petroleum Refinery is expected to open on September 14, with the share sale targeting between $1.55 billion and $1.8 billion, according to sources familiar with the transaction.
The development follows a disclosure by Dangote Group President and CEO, Aliko Dangote, on Thursday that the IPO would open within the next 10 to 12 days.
Dangote made the disclosure while speaking to investors and analysts during a visit to Botswana, saying the planned share sale would support the refinery’s ambition to more than double its capacity.
“So our dream is that we want to make sure we double the capacity of the refinery, which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” he said.
Reuters reported on Friday that the offering is expected to involve about 4.1 billion shares, with a proposed price range of between ₦500 and ₦595 per share. A source indicated that the likely price could be around ₦525 per share.
At the proposed range, the offering would represent one of the largest equity transactions in Nigeria’s capital market and could become Africa’s biggest IPO.
The planned listing follows the refinery’s successful $2.5 billion private equity placement completed in July. The placement was 3.7 times oversubscribed and brought external investors into the refinery’s ownership structure for the first time.
The refinery also secured a $1 billion underwriting programme in August, comprising $600 million for the completed private placement and a $400 million commitment towards the planned IPO.
The latest development comes as Dangote moves to raise additional capital for an ambitious expansion that would increase the refinery’s capacity from its current 650,000 barrels per day to 1.4 million barrels per day.
The refinery reached its full nameplate capacity of 650,000 barrels per day in February and has subsequently tested output at about 700,000 barrels per day.
Beyond the Nigerian project, Dangote also disclosed plans to launch a new refinery project on Kenya’s coast on September 30, in partnership with East African governments. The project is expected to take up to three years to complete and supply refined petroleum products to Kenya and neighbouring countries.
The IPO will therefore give investors an opportunity to participate directly in a refinery that is increasingly becoming a major player in Africa’s petroleum products market, while providing Dangote with fresh capital to fund its next phase of expansion.