Dangote Refinery Seeks $5 Billion in Record African IPO

Dangote Petroleum Refinery and Petrochemicals FZE is preparing for a $5 billion initial public offering, which would mark the largest stock market listing in African history. The company has submitted its application to the Securities and Exchange Commission of Nigeria and expects to publish a prospectus in September, with the offering concluding in October 2026.

While the primary listing will be on the Nigerian Exchange Limited, the company is marketing the IPO as a pan-African opportunity. Reports indicate a subsequent listing in Johannesburg and interest from investors in South Africa, Egypt, Ghana, and Rwanda, with Kenyan investors potentially contributing $500 million. To facilitate participation, the company will allow subscriptions in both U.S. dollars and Nigerian naira.

Proceeds from the offering are intended to finance operational expansion of the 650,000-barrel-per-day Lagos facility, repay debt, and support the construction of a new refinery on the Kenyan coast. This strategy, driven by majority owner Aliko Dangote, aims to reduce Africa's reliance on imported fuels. The move coincides with efforts by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to end raw crude oil exports by expanding domestic refining capacity.

The refinery was recently valued at $40 billion following a $2.5 billion private placement for a 6% stake. However, some analysts have noted that this valuation is significantly higher than that of international peers such as Tupras and HF Sinclair.