Africa’s richest businessman, Aliko Dangote, is preparing for what could become the continent’s largest stock market listing as Dangote Petroleum Refinery & Petrochemicals FZE targets a massive $5 billion Initial Public Offering (IPO). Expected to conclude in October, the fundraising exercise is aimed at expanding the Lagos-based refinery’s production capacity from its current level to an ambitious 1.4 million barrels of crude oil per day, further strengthening Nigeria’s position in the global energy market.
According to sources familiar with the transaction, the refinery has already submitted an initial application to Nigeria’s Securities and Exchange Commission and is awaiting regulatory approval. If approved, the company is expected to release its investment prospectus in September before opening the public share sale in October. While insiders say the target remains $5 billion, the final amount raised will ultimately depend on the approval granted by regulators. If successful, the listing would rank among the largest capital market transactions ever seen in Africa and represent more than four percent of the Nigerian Exchange’s total market capitalization.
The planned expansion reflects Dangote’s long-term vision of making Africa less dependent on imported refined petroleum products while transforming the continent into a major exporter of fuel. Beyond Nigeria, the company is reportedly exploring the construction of another refinery along Kenya’s coastline in collaboration with East African governments. The proposed project highlights the company’s growing regional ambitions as it seeks to reshape Africa’s energy landscape through large-scale investments.
Investor interest in the IPO is already spreading beyond Nigeria. Reports indicate that stock exchanges and financial institutions in Kenya, South Africa, Egypt, Ghana, and Rwanda have held discussions with Dangote’s advisers about potential participation. Rather than pursuing dual listings on multiple exchanges, the company is considering structured investment products such as global depositary receipts and exchange-traded instruments, allowing investors across Africa to gain exposure to the offering while the primary listing remains on the Nigerian Exchange. Industry insiders also revealed that investors may be able to subscribe using either the naira or the US dollar, making the offering even more attractive to local and international participants.
The planned IPO follows a recent $2.5 billion private placement, which valued the refinery at approximately $40 billion after selling a six percent stake. Built at an estimated cost of $20 billion, the refinery began operations in 2024 and reached full production capacity earlier this year, with the Nigerian National Petroleum Company Limited holding just over seven percent ownership. Although Dangote Petroleum Refinery has yet to officially comment on the proposed public offering, analysts believe the move could redefine Africa’s capital markets while providing the financial backing needed to establish one of the world’s largest refining operations and cement Nigeria’s leadership in the continent’s industrial and energy sectors.
source: punch
