By Ayo Kehinde
Dangote Refinery has completed the endorsement of its offer documents, clearing the way for its $1.6 billion initial public offering, which is scheduled to open next week.
The sign-off ceremony was led by Aliko Dangote, owner of the 700,000 barrels-per-day refinery, in Lagos on Monday and attended by advisers and other parties involved in the pan-African offer.
Dangote disclosed that the minimum subscription would be 10 ordinary shares at ₦525 each, meaning investors can enter the offer with ₦5,250.
Vetiva Advisory Services Limited is coordinating the capital raise.
The development follows approval of the offer by the Securities and Exchange Commission last week. A total of 4.1 billion shares will be offered to investors at ₦525 per shares.
The offer values Dangote Refinery at almost $50 billion and is expected to raise about ₦2.2 trillion from investors.
The company plans to deploy the proceeds towards doubling the refinery’s current capacity to 1.4 million barrels per day.
The expansion would further increase the significance of the refinery, which operates on a 6,180-acre site in the Lekki area of Lagos.
A successful listing could also significantly increase the market capitalisation of the Nigerian Exchange when the shares are eventually admitted to trading.
The company is also considering international listings, including a potential quotation on the Johannesburg Stock Exchange, while Egypt, Kenya, Ghana and Rwanda are also being considered.
Investor interest in the refinery predates the public offer.
In July, the company raised $2.5 billion through a private placement involving institutional investors and high-net-worth individuals. The placement was reportedly oversubscribed by 270 percent.
Some of the unmet demand from that transaction could spill into the public offer as investors seek exposure to one of Africa’s largest industrial projects.
Interest has also extended beyond Nigerian investors. Bloomberg reported on Monday that Abu Dhabi National Oil Company (ADNOC) had opened discussions with Dangote Refinery about potentially acquiring a stake in the business.
The report, citing people familiar with the matter, said the refinery had also received approaches from other major investors.
The Securities and Exchange Commission had earlier halted marketing activities around the proposed IPO in June after reports of intense retail interest, including prospective investors opening trading accounts in anticipation of the offer.
The September 14 launch comes as Nigeria prepares to regain greater visibility among international investors following FTSE Russell’s decision to restore the country to its frontier-market classification.
For Nigeria’s capital market, the Dangote Refinery IPO could become a major test of investor appetite and the market’s capacity to absorb large-scale equity offerings.
It could also provide a template for other major Nigerian businesses seeking to raise long-term capital through public listings.
NNPC Limited, for instance, has considered an IPO since its transition to a limited liability company, with discussions around a potential listing revived in recent years.
Beyond the capital-market implications, Dangote Refinery’s growing operations have already strengthened Nigeria’s position in the global petroleum-products market.
The refinery, which began production in January 2024, became the largest external supplier of jet fuel to Europe in June and maintained that position in July.
With its IPO now approaching, investors will be watching not only the demand for the shares but also whether the capital raise can provide the funding needed to support the refinery’s next phase of expansion.
