Dangote Petroleum Refinery & Petrochemicals FZE is seeking to raise about $5 billion through an Initial Public Offering (IPO) expected to be completed in October.
The planned fundraising will finance the expansion of the company’s Lagos refinery, increasing its refining capacity to 1.4 million barrels per day.
According to a Reuters report, the proposed transaction could become the largest stock market listing in Africa’s history.
Sources familiar with the transaction said the refinery has submitted an initial application to the Securities and Exchange Commission (SEC) and is awaiting regulatory approval.
If approved, the company is expected to release its prospectus in September ahead of the planned share sale in October.
One source said the refinery is targeting a $5 billion fundraising, although the final amount will depend on the approval granted by the Nigerian regulator.
The source added that the primary listing will take place on the Nigerian Exchange.
If successful, the IPO would represent just over four per cent of the Nigerian Exchange’s All Share Index, which had a market capitalisation of about $116 billion on Tuesday.
Owned by Africa’s richest businessman, Aliko Dangote, the refinery plans to use the proceeds to increase refining capacity and reduce Africa’s dependence on imported refined petroleum products.
The expansion is also expected to strengthen the continent’s position as a major exporter of refined fuel.
According to the sources, the company is also considering building another refinery along Kenya’s coastline in partnership with East African governments.
The proposed public offering has attracted interest from capital markets across Africa.
Stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have reportedly held discussions with the refinery’s advisers in recent months.
One source said Kenya’s capital market could contribute up to $500 million to the IPO due to strong demand from institutional investors, including pension funds.
The refinery also plans to make the offering accessible to investors across Africa.
According to one source, investors outside Nigeria may participate through structured investment products rather than through cross-listing on other exchanges.
The source explained that interested markets could use instruments such as global depositary receipts or exchange-traded products that mirror the shares listed on the Nigerian Exchange and provide access to future dividend payments.
However, the source clarified that the company has no plans for a dual listing or cross-listing on other African stock exchanges.
The planned IPO follows a $2.5 billion private placement completed last month for a six per cent equity stake, valuing the refinery at about $40 billion.
Reuters noted that the valuation is considerably higher than that of several global refining companies.
Turkey’s Tupras, which operates four refineries with a combined capacity similar to Dangote’s, has a market value of about $12 billion.
HF Sinclair, a United States-listed refiner with a capacity of 678,000 barrels per day, has a market capitalisation of approximately $16 billion.
The Dangote Refinery, which cost about $20 billion to build, commenced operations in 2024 and reached full production capacity earlier this year.
The Nigerian National Petroleum Company Limited (NNPC Ltd.) owns a stake of just over seven per cent in the refinery.
In April, Aliko Dangote announced plans to expand the refinery’s production capacity to 1.4 million barrels per day.
Sources also disclosed that investors participating in the IPO would have the option of subscribing in either naira or United States dollars and receiving returns in the same currency.
According to the sources, Dangote intends for the public offering to become “an African champion” by allowing investors across the continent to participate in financing one of Africa’s largest industrial projects.
Both sources requested anonymity because discussions surrounding the transaction remain confidential.
Efforts to obtain comments from Dangote were unsuccessful.
