The Dangote Petroleum Refinery is set to hold the signing ceremony for its Initial Public Offering (IPO) in Lagos, marking a major milestone in the company’s journey to becoming a publicly listed firm.
The event is scheduled to take place at the Eko Hotel and Suites, Victoria Island, where the refinery will formally launch the offer of 4.1 billion ordinary shares, priced at ₦525 per share.
The ceremony will be led by the President and Chief Executive of Dangote Industries Limited, Aliko Dangote, alongside the refinery’s management team and key stakeholders in Nigeria’s capital market.
The IPO represents the refinery’s first public share offering since it was inaugurated in 2023 following nearly a decade of construction and an estimated $20 billion investment.
Situated in the Lekki Free Zone, Lagos, the refinery has a nameplate capacity of 650,000 barrels of crude oil per day, making it Africa’s largest single-train refinery.
The Securities and Exchange Commission (SEC) has approved the public offer, clearing the way for what the company described as one of the biggest capital market transactions in Nigeria’s history.
A company official said the refinery is expected to be listed on the Nigerian Exchange (NGX) on September 14.
Nigerian Partnership Consulting
Funds raised from the IPO will be used to finance a major expansion of the refinery, with plans to increase its processing capacity from about 700,000 barrels per day to 1.4 million barrels per day.
If achieved, the expansion would make the facility the world’s largest operating oil refinery, overtaking India’s Jamnagar refinery complex.
The public offer comes just weeks after the company secured $2.5 billion through a private placement completed in July.
Based on the offer price of ₦525 per share, the refinery is valued at approximately $47 billion. Analysts say a fully subscribed offer could increase the total market capitalisation of the Nigerian Exchange by between 30 and 40 per cent.
To attract both institutional and retail investors, Dangote Petroleum Refinery has proposed paying dividends in US dollars, using foreign exchange earnings from refined petroleum products and petrochemical exports to protect investors from naira volatility.
The refinery currently supplies more than 80 per cent of Nigeria’s domestic petrol requirements, although analysts note that its long-term performance will depend on factors including crude oil supply, export demand and refining margins.
Nigerian Partnership Consulting
According to data from the Africa Finance Corporation, African countries spend more than $230 billion annually on imported commodities, with refined petroleum products accounting for over 70 per cent of the continent’s fuel consumption. The Dangote Group says it is positioning the refinery to help reduce Africa’s dependence on imported fuel.
Beyond Nigeria, the group is also expanding its refining ambitions, with plans to commence construction of a 700,000-barrels-per-day coastal refinery in Lamu, Kenya, on September 30.
Market observers say the September 14 listing will provide a major test of investor appetite for large-scale industrial assets and could significantly reshape the Nigerian capital market.
SOURCE: The Nation Nigeria