The planned public listing of Dangote Petroleum Refinery has sparked overwhelming investor interest, with demand already building ahead of what could become Africa’s largest Initial Public Offering (IPO).
According to a Bloomberg report published on Thursday, the refinery’s planned IPO, expected in September 2026, could raise as much as $2 billion and set a new record as the biggest stock market listing on the continent.
The report said the proposed offering has attracted strong interest from institutional investors, high-net-worth individuals and first-time retail investors seeking exposure to one of Africa’s largest industrial assets.
Bloomberg reported that institutional investors have already indicated interest worth nearly $2 billion before the formal launch of the IPO, reflecting growing confidence in both the refinery’s prospects and Nigeria’s capital market.
The offering is expected to value the refinery at about $40 billion, although some analysts believe its valuation could reach as high as $50 billion.
“Dangote Petroleum Refinery and Petrochemicals FZE’s plan to raise as much as $2bn in Africa’s biggest initial public offering has sparked an investor frenzy across Nigeria, drawing interest from some of the country’s wealthiest people to first-time investors,” Bloomberg reported.
Dangote Petroleum Refinery plans to offer approximately 10 per cent of its equity to investors, with the shares expected to be listed on multiple African stock exchanges, including the Nigerian Exchange Limited (NGX).
Owned by Africa’s richest man, Aliko Dangote, the refinery has become a major force in Nigeria’s energy sector since commencing operations.
Located in the Lekki Free Trade Zone in Lagos, the facility has reportedly increased production to about 700,000 barrels per day, making it one of the world’s largest single-train refineries.
The refinery has significantly reduced Nigeria’s dependence on imported petroleum products despite the country’s status as one of Africa’s leading crude oil producers.
Bloomberg noted that the refinery has helped transform Nigeria from a major importer of gasoline into a net exporter of refined petroleum products to regional markets.
Despite the strong investor appetite, the planned listing has attracted regulatory attention.
The Securities and Exchange Commission (SEC) reportedly suspended marketing activities related to the IPO in June following concerns over aggressive promotional campaigns surrounding the offer.
However, institutional investors have continued positioning themselves ahead of the planned listing.
The refinery had earlier tested investor appetite through a private placement exercise.
Speaking during an interview on Arise Television in May, Aliko Dangote disclosed that the company received subscriptions worth about $2 billion despite seeking to raise only $1 billion.
According to a prospectus seen by Bloomberg, the company targeted a valuation of $39.1 billion during the private placement.
Responding to Bloomberg’s enquiries, the company confirmed strong interest from both domestic and international investors.
“We have successfully completed a number of domestic and international company introduction and market-sounding activities and have been encouraged by the level of interest received from both local and international investors,” the company stated.
It added that discussions on the final structure of the IPO were still ongoing.
“The group hasn’t finalised the size, timing, or structure of the IPO,” the company said.
Market analysts believe the offering will serve as a major test of the depth and maturity of African capital markets due to its size and expected retail participation.
The IPO is also expected to benefit from improving investor sentiment in Nigeria’s equities market.
Bloomberg reported that Nigeria’s benchmark stock index has gained about 58 per cent in dollar terms this year, making it one of the world’s best-performing equity markets.
The refinery’s financial performance has further strengthened investor confidence.
According to people familiar with the company’s finances cited by Bloomberg, Dangote Refinery recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) margins of about 23 per cent last year, placing it among the world’s most profitable refining operations.
The report also noted that recent geopolitical tensions in the Middle East have boosted earnings across the Dangote Group’s refinery, fertiliser and petrochemical businesses.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, welcomed the planned listing, saying broader retail participation could help expand wealth creation.
“We can see the excitement already about the IPO, not only in Nigeria, but beyond Nigeria,” he said.
“If you get a million people to invest and then they see appreciation over time, they have more disposable income, they have more wealth,” Oyedele added.
The Dangote Petroleum Refinery, which commenced production in 2024, was established to address Nigeria’s decades-long dependence on imported refined petroleum products.
With a nameplate refining capacity of 650,000 barrels per day and current production reportedly approaching 700,000 barrels daily, the facility has become a key pillar of Nigeria’s energy security strategy.
The planned IPO is expected to give investors a rare opportunity to own a stake in one of Africa’s largest industrial projects while setting a new benchmark for capital raising across the continent.
