Dangote Refinery IPO Targets $5bn, Eyes Africa’s Top Spot

Nigeria’s Dangote Petroleum Refinery & Petrochemicals is preparing an initial public offering (IPO) that could become Africa’s biggest capital raise via this route, targeting up to $5 billion.

The offering, potentially opening in May, would involve 5-10% of the company’s shares, valued by analysts at $40-50 billion, according to African Capital Markets News.

Dangote Group has enlisted Stanbic IBTC Capital for international placements, Vetiva Capital Management for Nigerian retail sales, and FirstCap for local institutional investors, including pension funds.

The Securities and Exchange Commission (SEC) and the Nigerian Exchange Group (NGX) are reviewing an innovative structure that allows naira purchases with dollar dividends tied to export revenues.

A prospectus is expected this month, followed by a roadshow and listing on the NGX main board by June or July.

World’s Largest Single-Train Refinery Drives Growth

The core asset is the $20 billion refinery in Lagos’ Ibeju-Lekki Free Zone, commissioned in 2023 and operational since January 2024. Operating near its 650,000 barrels-per-day capacity, it processes crude amid global disruptions from the US-Israel-Iran conflict. Plans aim to expand to 1.4 million barrels per day over three years.

The facility includes a 1,100km pipeline network and supports exports to Namibia, Botswana, Zimbabwe, Zambia, and South Africa via a new Namibian tank farm for 1.6 million barrels of petrol and diesel. It also produces 3 million metric tons of urea fertiliser annually and plans to scale polypropylene output from 900,000 to 2.4 million tons for textiles, packaging, and consumer goods.

The refinery generates $6.4 billion in annual export revenue, meets 35-50 per cent of Nigeria’s petrol demand, and positions the country as a net exporter. The IMF estimates it could lift non-oil GDP by 1.5 per cent, add $5.5 billion to reserves, create 150,000 jobs, and train 60,000 engineers.

Afreximbank Backs Expansion with $4bn Loan

Afreximbank underwrote $2.5 billion of a $4 billion syndicated loan, with Access Bank as co-lead arranger.

Afreximbank president, Dr George Elombi, highlighted the bank’s $15 billion investment in Dangote since 2015, calling the refinery a model for African energy security and intra-continental trade.

Recall that on April 1, NGX and the African Securities Exchanges Association hosted exchanges from Johannesburg, Ghana, Ethiopia, BRVM, and Nairobi to explore the IPO as a blueprint for pan-African investment. NGX CEO Emomotimi Agama emphasized integrated markets for efficient capital flows, while SEC Director-General Emomotimi Agama stressed mobilizing African funds for development.

Dangote Group’s listed firms—Dangote Cement ($10 billion market cap), Dangote Sugar ($580 million), and NASCON—bolster its NGX presence.