Nigeria’s Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of 4.1 billion shares in Dangote Petroleum Refinery at N525 each, paving the way for a landmark N2.15 trillion capital raise that could become Africa’s largest-ever share sale. The approval marks a critical step in Aliko Dangote’s plan to list the refinery on the Nigerian Exchange and unlock funds for a major expansion that would double its processing capacity to 1.4 million barrels per day. The order book is expected to open on September 14, bringing one of Nigeria’s most anticipated corporate listings within reach of investors.
Under the approved offering, Dangote Petroleum Refinery and Petrochemicals FZE will issue 4.1 billion ordinary shares, with the potential to raise approximately N2.15 trillion if fully subscribed. In addition to the new shares, the SEC also registered 120.13 billion existing ordinary shares, giving the refinery an implied valuation of about $47 billion based on the offer price. This valuation places the refinery among the most valuable industrial assets on the continent and sets the stage for a significant test of investor appetite in Nigeria’s capital market.
Vetiva Advisory Services Limited is acting as the lead issuing house for the transaction, which includes a greenshoe option allowing up to 15 percent more shares to be sold if demand exceeds expectations. If exercised, this could push the total capital raised beyond the base N2.15 trillion. The refinery has already secured a $400 million underwriting commitment, adding financial assurance to the offering and signaling confidence from institutional backers.
Located in the Lekki Free Zone in Lagos, the refinery was built at an estimated cost of $20 billion and currently operates at a nameplate capacity of 650,000 barrels per day. It has already tested processing volumes of around 700,000 barrels per day and is being positioned for further growth. The IPO proceeds will primarily finance the expansion to 1.4 million barrels per day, which would rank the facility among the world’s largest refineries.
Since commencing commercial operations, the refinery has significantly reduced Nigeria’s dependence on imported refined petroleum products. It now supplies domestic markets and exports to countries across Africa and Europe, including aviation fuel, benefiting from tighter global supply conditions following geopolitical disruptions involving Iran. This expanding international footprint enhances its long-term earnings potential, a key factor for investors evaluating the IPO.
Dangote has positioned the offering as a pan-African investment opportunity, seeking participation from institutional and retail investors across the continent. He aims for the refinery to become one of Africa’s largest companies, with projected annual EBITDA exceeding $12 billion. However, the $47 billion valuation has drawn scrutiny, especially when compared to internationally traded refiners of similar scale.
The IPO will also have broader implications for Nigeria’s capital market. A successful listing would deepen the equity market, introduce a major energy player, and potentially inspire other large private firms to go public. Attention now turns to the final transaction steps and the opening of the order book on September 14, with the outcome likely to set a new benchmark for African equity offerings.
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