The long-awaited Dangote Refinery IPO could open within the next 10 to 12 days, as Africa’s largest oil refinery moves closer to a major fundraising exercise that could reshape Nigeria’s capital market. Aliko Dangote disclosed the timeline on Thursday while speaking with investors and analysts during a visit to Botswana, according to Reuters.
Dangote said the planned IPO could raise about $5 billion, potentially making it the largest public offering in Africa. The move comes just months after the refinery secured $2.5 billion through a private placement, a deal that strengthened its balance sheet and positioned the business for its next phase of expansion. The private placement was reportedly oversubscribed by 3.7 times.
The refinery, which has a nameplate capacity of 650,000 barrels per day, reached full capacity in February and has since tested production at about 700,000 barrels per day. Dangote said the group plans to eventually double the facility’s capacity to 1.4 million barrels per day, reinforcing its ambition to make the refinery a major supplier of refined petroleum products across Africa and international markets.
The planned IPO is not the only major capital-market move from the Dangote Group. Dangote also disclosed that Dangote Cement Plc is expected to pursue a secondary listing on the London Stock Exchange in October. The group is also planning a new refinery in Kenya in partnership with East African governments, with construction expected to take up to three years and the facility intended to serve Kenya and neighbouring countries.
The Dangote Refinery has previously been valued at about $39.1 billion, while its CEO, David Bird, said the company is prioritising a Nigerian listing rather than pursuing an overseas stock-market listing in the immediate future. With the IPO now expected within days, investor attention is likely to turn to the offer details, valuation and how the massive fundraising will support Dangote’s plan to double the refinery’s capacity.
source: nairametrics
