Dangote Petroleum Refinery and Petrochemicals FZE has commenced its Initial Public Offering (IPO), allowing investors to acquire an ownership stake in Africa’s largest refinery as the company targets about N2.15 trillion to finance expansion and long-term growth.

The public offer opened on September 14, 2026, with 4.1 billion new ordinary shares available at N525 per share. Investors can subscribe to a minimum of 10 shares, valued at N5,250.

The offer is scheduled to close on October 13, 2026, subject to the terms and conditions set out in the prospectus.

The transaction is expected to become Africa’s largest IPO to date and is open to both retail and institutional investors, including eligible investors from across Africa. It is also intended to widen participation in Nigeria’s capital market by enabling retail investors to access the shares through approved digital and other distribution channels.

Funds generated from the offering will support the refinery’s expansion and other strategic investments. Dangote plans to double its refining capacity from approximately 700,000 barrels per day to 1.4 million barrels per day within the next three years.

Beyond raising capital, the IPO provides members of the public with an opportunity to participate in the ownership of a major Nigerian industrial asset, while giving the company additional long-term funding for its expansion plans.

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the offering as an opportunity that goes beyond capital mobilisation, saying it would enable Nigerians, Africans and investors globally to participate in the refinery’s growth.

He said the refinery was established with the aim of transforming Africa’s energy landscape, creating jobs, conserving foreign exchange and contributing to economic development. According to him, the IPO would also expand ownership of the business.

Dangote further said broader ownership could strengthen Nigeria’s capital market and enable more people to benefit from the value generated by major Nigerian businesses.

Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, Temi Popoola, described the IPO as significant not only because of its scale but also because of its potential to increase public participation in the ownership of Nigerian businesses.

He said the capital market should play a growing role in connecting Nigerian companies in need of long-term financing with Nigerians seeking opportunities to participate in their growth.

Popoola added that NGX had put infrastructure in place to improve accessibility to public-market investments, including NGX Invest and links to more than 50 distribution channels made up of stockbrokers, banks and fintech platforms.

The refinery commenced operations in 2024 and currently has a refining capacity of about 700,000 barrels per day. It has emerged as a major supplier of refined petroleum products to the Nigerian market and has also exported refined products to international destinations.

In the first half of 2026, the company posted a net profit of $1.82 billion, compared with a loss recorded during the corresponding period of the previous year. Its revenue during the period exceeded $13 billion.

The proposed expansion is expected to reinforce the refinery’s position in the regional petroleum products market and enhance its capacity to serve both domestic and international markets. Alongside the refinery expansion, the company is pursuing broader investments across its energy and petrochemical operations.

The IPO comes as Dangote Refinery continues efforts to strengthen its role in Nigeria’s energy industry, including reducing dependence on imported refined petroleum products and supporting the country’s emergence as an exporter of refined products.

For Nigeria’s capital market, the transaction offers an avenue for private and institutional funds to support industrial expansion while giving retail investors access to equity in a major Nigerian enterprise.

Investor interest was recorded shortly after the offer commenced, with reports indicating that thousands of investors committed more than N10 billion within the first hour of the IPO.

The offer will close on October 13, after which the shares are expected to proceed through the applicable listing process on the Nigerian Exchange. Trading is currently expected to commence later in November, subject to completion of the offer and fulfilment of regulatory requirements.

Source: msmeafricaonline