Dangote Refinery Anticipates Raising $1 n From Planned Private Placement

Dangote Petroleum Refinery is anticipating to generate about $1 billion through a private placement, valuing the company at approximately $39.1 ‌billion, according to sources and a placement document.

The refinery is offering 3 billion ordinary shares at $0.35 per share, with investor demand already exceeding $2 billion, sources said, according to Reuters.

Investors must subscribe to a ⁠minimum of 1 million shares ($350,000), with additional purchases in multiples of 500,000 shares. Shares will be subject to a 365-day lock-up period.

Proceeds will be used for expansion and general corporate purposes as the refinery ramps up operations and strengthens its market position, the document showed.

The 650,000 barrels-per-day refinery, ‌which ⁠began production in 2024, has expanded output across diesel, aviation fuel, naphtha and petrol, significantly reducing Nigeria’s reliance on imported refined products.

Dangote officials did not respond ⁠to a request for comment on the placement.

Market participants expect further investments in logistics, storage and distribution infrastructure, ⁠alongside possible expansion into petrochemicals, according to the placement document.

The fundraising could pave the way for ⁠a future public listing, which billionaire owner Aliko Dangote has previously signaled could happen later this year.

LEADERSHIP reports that Standard Bank Group, has already reaffirmed its commitment to support the growth of Dangote Industries Limited, pledging backing for the planned listing of the Dangote Petroleum Refinery while expressing readiness to finance future expansion projects across the continent.

The commitment came during a strategic visit by Standard Bank Group Chief Executive, Sim Tshabalala, and senior executives to the Dangote Petroleum Refinery and Dangote Fertiliser complex in Lagos.

Speaking after touring the facilities, Tshabalala described the refinery as a transformational industrial project with far-reaching implications for Nigeria and Africa.

“We are here because the Dangote Group is a large and important global player and a significant force on the African continent,” he said. “Standard Bank is the largest financial institution in Africa and we have partnered with Dangote on a variety of initiatives. We are here to lend support, to see this magnificent refinery and to discuss Vision 2030 and how we can continue supporting the Group’s growth ambitions.”

Tshabalala disclosed that Standard Bank intends to play a leading role in the refinery’s planned Initial Public Offering and future growth initiatives.

“As Dangote lists, there is an IPO coming up and we are a leading player in that process,” he said. “As the Group continues to expand in Nigeria and across Africa, there will be opportunities for financial advisory services and balance sheet support, and we stand ready to provide both.”

He described the refinery as “a wonder of the world,” noting that its impact is already being felt through stronger foreign exchange earnings, improved balance-of-payments performance and enhanced energy security.

“This is a wonder to behold. It is massive, productive and transformative. It is already making a significant contribution to Nigeria’s economy through its impact on foreign reserves, the balance of payments and the lives of ordinary Nigerians,” he said.

Group Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, said the visit represented a significant milestone in a partnership that began during the refinery’s construction phase.

“The bank visited us during construction and understood the scale of what we were building,” Edwin said. “Today, the refinery is fully operational and they can see what their support has helped to create. It is like nurturing a tree and eventually seeing it bear fruit.”

He added that both organisations are exploring opportunities to deepen collaboration as Dangote expands its industrial footprint across Africa.

Managing Director and Chief Executive Officer of the Dangote Petroleum Refinery, David Bird, said the visit highlighted the importance of long-term partnerships in delivering large-scale industrial projects.

“Standard Bank has been one of our strongest supporters throughout the history of the refinery and the broader Dangote Group,” Bird said.

“This visit was an opportunity to demonstrate what that support has enabled. Seeing is believing, and it allows our partners to appreciate the scale of what has been achieved.”

The visit also coincided with a major operational milestone for the refinery, which has now exceeded its original design capacity.
Bird disclosed that the refinery recently completed performance test runs at 700,000 barrels per day, above its nameplate capacity of 650,000 barrels per day.

“We have always believed there was engineering flexibility built into the design,” he said. “Achieving sustained production of 700,000 barrels per day is a testament to the technical capability of our people and the strength of the systems we have built.”