Dangote Refinery sets minimum subscription for $1.6bn IPO

Dangote Refinery has completed the endorsement of its initial public offering (IPO) documents, paving the way for the launch of its $1.6 billion public equity sale, described as potentially the largest IPO in Africa.

Aliko Dangote, owner of the 700,000-barrel-per-day refinery, led the sign-off ceremony in Lagos on Monday in the presence of advisers and other stakeholders involved in the pan-African offering.

The IPO is expected to raise about ₦2.2 trillion from investors, with the minimum subscription set at 10 ordinary shares, valued at ₦5,250.

Lagos-based Vetiva Advisory Services Limited is coordinating the capital raise.

SEC approval clears way for IPO

The development follows approval from the Securities and Exchange Commission (SEC), with 4.1 billion shares available for subscription at ₦525 per share.

The offer values the refinery at nearly $50 billion and is expected to provide funding for plans to double its current production capacity from 700,000 barrels per day to 1.4 million barrels per day.

The refinery is located on a 6,180-acre site on the outskirts of Lagos.

Potential impact on Nigerian capital market

The proposed listing could significantly increase the market capitalisation of the Nigerian Exchange, with the refinery expected to list its shares on the local bourse later this year.

The company is also considering cross-border listings, including the Johannesburg Stock Exchange, while markets in Egypt, Kenya, Ghana and Rwanda are reportedly being considered.

The IPO is scheduled to launch on September 14, 2026.

Strong investor interest

Investor interest in the refinery has remained strong following a $2.5 billion private placement completed in July.

The private placement, which targeted institutional investors and high-net-worth individuals, was reportedly oversubscribed by 270 per cent.

The company could also attract additional demand from investors who were unable to secure shares during the private placement.

The SEC had earlier suspended marketing activities linked to the IPO after reports emerged that some retail investors were opening trading accounts in anticipation of the share sale.

ADNOC, other investors show interest

Interest in the refinery has reportedly extended beyond Nigerian retail investors, with Abu Dhabi National Oil Company (ADNOC) said to have opened discussions with Dangote Refinery over a possible stake purchase.

Reports also indicated that other major investors had approached the company.

The proposed IPO is expected to attract further attention as Nigeria seeks to increase foreign portfolio investment following its restoration to frontier market status by FTSE Russell.

Dangote Refinery began production in January 2024 and has continued to expand its presence in international fuel markets.

In June, the refinery reportedly became the largest external supplier of jet fuel to Europe, surpassing the United States, and maintained the position in July.