Dangote Refinery has signed off on offer documents for a $1.6 billion initial public offering, paving the way for what is billed as Africa’s largest public equity sale next week.
Aliko Dangote, Africa’s richest man and owner of the 700,000-barrel-per-day (bpd) plant, led the sign-off ceremony in Lagos on Monday in the presence of advisers and other parties to the pan-African offering. The deal seeks to raise about N2.2 trillion from investors.
The minimum subscription for the offer has been set at 10 ordinary shares, or N5,250, Mr. Dangote announced at the event.
The Dangote Group said it is opening the offer to retail investors across income levels, with the aim of allowing drivers, traders, cooks, and managers to participate.
“There is no segregation on who can own these shares. We want every human being living on the continent to be part of this action, and I’m sure they will continue to be happy now, in the future, and forever,” Mr. Dangote said.
According to Ukandu Ume Ukandu, CEO of FirstCap, the offer is targeting 10 million retail investors.
Lagos-based Vetiva Advisory Services Limited is coordinating the capital raise. The offer opens on September 14 and closes on October 13.
The ceremony followed approval last week by the Securities and Exchange Commission, SEC. A total of 4.1 billion shares will be offered for subscription at N525 ($0.40) per unit.
The maiden share offer values the refinery at nearly $50 billion. Proceeds will be used to double the facility’s current capacity to 1.4 million bpd. The plant sits on a 6,180-acre expanse on the outskirts of Lagos.
Analysts say listing the shares on the Nigerian Exchange later this year could lift the bourse’s market capitalisation by more than one-third.
A cross-border listing on the Johannesburg Stock Exchange is also being considered, alongside potential listings in Egypt, Kenya, Ghana and Rwanda.
In July, a private placement ahead of the IPO raised $2.5 billion from institutional investors and high-net-worth individuals. The offer was oversubscribed by 270 per cent. Unmet demand from that placement could spill over into the public offer.
Interest in the IPO has been strong across Nigeria. In June, the SEC halted marketing activities after reports that many retail investors, including those with little knowledge of equity investment, were opening trading accounts ahead of the sale.
Investor appetite is also growing beyond the retail segment. Abu Dhabi National Oil Company, ADNOC, is reportedly in talks with the refinery about acquiring a stake, according to Bloomberg, which cited an insider. The refinery has also received approaches from other major investors, the report said.
The listing comes as Nigeria expects improved liquidity from foreign portfolio inflows, following FTSE Russell’s decision to restore the country to frontier market status after a nearly three-year downgrade.
The scale of the offering could also provide a template for other large Nigerian companies considering public listings. The Nigerian National Petroleum Company Limited, NNPC Ltd, has been considering an IPO since 2021, after attaining limited liability company status. Discussions around the plan resurfaced in November 2024.
The Dangote Refinery, which began production in January 2024, became Europe’s largest external supplier of jet fuel in June, a position it also held in July.
