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Nigeria’s Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of Dangote Refinery, clearing the way for what is expected to become Africa’s biggest-ever share sale.
Dangote Group said on Friday that the regulator approved the offer, which could raise about N2.15 trillion if fully subscribed, Reuters reported.
The refinery plans to offer 4.1 billion ordinary shares at N525 per share, giving investors an opportunity to take part in one of Africa’s largest industrial projects.
What the report is saying
The SEC has also registered 120.13 billion existing ordinary shares in the refinery, implying a valuation of about $47 billion based on Reuters’ calculations.
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The 650,000-barrel-per-day facility, located on the outskirts of Lagos, was built at an estimated cost of $20 billion. Since commencing operations, it has become a major force in Nigeria’s fuel market and has expanded its exports of refined products to markets across Africa and Europe.
- “With SEC approval now secured, the refinery is poised to embark on a historic public offering that could significantly broaden investor participation in one of Nigeria’s most transformative industrial ventures,” Reuters quoted the company as saying.
- The offer is expected to open for subscription on September 14, according to a source familiar with the transaction.
- The timeline is consistent with comments made by Aliko Dangote, the group’s majority shareholder, on Thursday.
- Proceeds from the share sale will support Dangote Refinery’s plans to more than double its current capacity to 1.4 million barrels per day.
The company has already taken steps to strengthen its finances ahead of the IPO, including raising $2.5 billion through a private placement and securing underwriting commitments from investors.
A formal signing ceremony with the Nigerian Exchange is expected to take place next week, according to two company sources cited by Reuters.
Dangote said on Thursday that he wants the refinery to become one of Africa’s largest companies, with a target of generating more than $12 billion in earnings before interest, tax, depreciation and amortisation (EBITDA).
Dangote also said the offer would be open to investors across Africa, including Nigerian retail investors.
- “This is not a Nigerian listing. It’s an African listing, and we are going to pay everybody, including the Nigerian listing, in dollar terms,” he said at a business meeting in Botswana.
Get up to speed
The planned IPO is expected to give retail and institutional investors greater access to the refinery, which has previously been funded largely through private capital.
Earlier on Friday, Nairametrics reported that the Dangote Refinery IPO was expected to open within 10 to 12 days.
The company had previously raised $2.5 billion through a private placement as part of efforts to strengthen its balance sheet ahead of the listing. It also secured an underwriting programme from investors to support the planned offer.
Dangote Refinery’s expansion plans come as the group pursues additional refining opportunities outside Nigeria, including a proposed refinery project in Kenya.
What you should know
Dangote has said the group’s long-term ambition is to double the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day, further strengthening its position as one of the world’s largest refining facilities.
The refinery’s impact is also increasingly being felt beyond Nigeria.
Data from the U.S. Energy Information Administration showed that Nigeria’s seaborne refined petroleum exports to Europe surged by about 767% to 130,000 barrels per day in the second quarter of 2026, compared with 15,000 barrels per day in 2023, driven largely by increased production from the Dangote Refinery.
