Africa’s richest man, Aliko Dangote, has confirmed that the long-awaited initial public offering (IPO) of the Dangote Refinery is expected to open within days, setting the stage for one of the most closely watched listings in Africa.
Dangote said the IPO would open within the next 10 to 12 days during a meeting with investors and analysts in Botswana. The refinery is expected to be listed on the Nigerian Exchange.
The latest reported terms indicate that the offering could raise about $1.5 billion, with shares priced at 525 naira and approximately 4.1 billion shares planned for sale. A 15% greenshoe option could allow additional shares to be sold if demand is strong.
Earlier reports had put the potential fundraising target at around $5 billion, making the final terms and valuation a major focus for investors as the transaction moves towards the market.
Expansion to 1.4 million barrels per day
The capital raising is closely linked to Dangote’s plans to significantly expand the refinery.
The Lagos facility currently has a nameplate capacity of 650,000 barrels per day, although it has tested production at around 700,000 barrels per day.
Dangote wants to more than double capacity to 1.4 million barrels per day, which would further strengthen the refinery's position as a major supplier of petroleum products to Nigeria and other African markets.
“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,” Dangote said.
The expansion could have significant implications for Africa’s energy markets by increasing the continent’s domestic refining capacity and reducing reliance on imported petroleum products.
Dangote looks beyond Nigeria
The refinery IPO is part of a broader expansion strategy by the Dangote Group.
Dangote Cement is expected to pursue a secondary listing on the London Stock Exchange in October, a move that could widen the company's access to international investors and capital.
The group is also preparing a major new refinery project on Kenya’s coast. Dangote said the project is expected to launch on September 30 and could take up to three years to complete.
The Kenya project would supply refined petroleum products to Kenya and neighbouring East African markets, potentially reducing the region’s dependence on imported fuel.
A landmark moment for African investors
The Dangote Refinery IPO is significant not only because of its size, but because it could give African investors direct ownership in one of the continent’s most strategically important industrial assets.
For Nigeria’s capital markets, the listing also provides an opportunity to deepen the domestic equity market and attract institutional and regional investors.
The final IPO pricing, valuation, demand and allocation will now be closely watched as investors assess whether Dangote’s ambitious expansion strategy can translate into long-term returns.
If successful, the listing could become a defining moment for African capital markets—and another step in Dangote’s effort to build industrial businesses with a footprint extending well beyond Nigeria.
