The Dangote Petroleum Refinery and Petrochemicals FZE has taken a major step towards becoming a publicly listed company following the signing of registration documents for its initial public offering (IPO).
The IPO, which is expected to become one of Africa’s largest share offerings, seeks to raise about $1.6 billion from investors through the sale of 4.1 billion shares priced at ₦525 each.
The offer, which values the refinery at approximately $49 billion, is scheduled to open on September 14 and close on October 13, with the company expected to be listed in November.
Speaking at the signing ceremony, Chairman of the Dangote Group, Aliko Dangote, said the refinery represented an important asset for Africa’s industrialisation and energy security.
“The refinery means too much to our continent,” Dangote said. “We can’t industrialise if we don’t have energy security.”
Dangote had appointed Stanbic IBTC Capital, Vetiva Advisory Services and FirstCap as financial advisers to the transaction.
According to Vetiva Capital Management Chief Executive Officer, Chuka Eseka, the minimum subscription is 10 shares, meaning retail investors can participate with as little as ₦5,250.
FirstCap Chief Executive Officer, Ukandu Eme Ukandu, said the IPO was targeting about 10 million retail investors.
The public offering follows a private placement that raised $2.5 billion, with the transaction reportedly attracting subscriptions 3.7 times above its initial target. Investors in the private placement included the Africa Finance Corporation and the African Export-Import Bank.
Funds raised through the private placement and the IPO will support the refinery’s expansion plans, including doubling its production capacity from about 700,000 barrels per day to 1.4 million barrels per day by 2028.
The refinery, which took 11 years and an estimated $20 billion to build, has significantly altered Nigeria’s position in the petroleum market, helping the country move from being a major fuel importer towards becoming a petroleum products exporter.
The facility has also emerged as an important source of refined petroleum products for markets within and beyond Nigeria.
Dangote is a prominent name among African investors, with business interests spanning several sectors, including sugar production and building materials, through companies that are already publicly traded.
Meanwhile, Nigeria’s equities market has recorded a strong performance this year, with the country’s benchmark equities gauge rising 73 per cent in dollar terms, reportedly making it the second-best performing major market globally after South Korea.
The Dangote Refinery IPO is therefore expected to attract significant interest from both domestic and international investors as the company prepares for its anticipated listing later this year.
