Aliko Dangote’s flagship refinery has secured about $2.5 billion in a private share placement as the company moves toward what could become one of Africa’s largest initial public offerings.
Dangote Petroleum Refinery & Petrochemicals FZE sold roughly 6% of the business, valuing the Lagos-based complex at about $40 billion, our correspondent gathered.
Demand for the offering reached roughly $4 billion, well above the shares available, reports indicate.
The fundraising proceeded in phases, with approximately $2 billion raised initially and an additional $500 million secured later, largely from regional institutional investors, sources said.
The equity sale follows a $750 million debt issuance the refinery completed recently.
The facility, at Lekki, currently processes about 700,000 barrels of crude oil a day and began commercial operations in 2023 as one of the world’s largest single-train refineries.
Company officials are targeting a public listing as soon as August, subject to market conditions and regulatory approvals, according to people briefed on the matter.
The IPO is expected to raise between $1.5 billion and $2 billion, which would make it among the biggest capital-market transactions in African history.
Dangote’s team has signaled an emphasis on African participation in both the private placement and the planned public offering.
The public tranche is likely to be marketed to Nigerian, wider African and international retail investors to broaden ownership, another source said.
Proceeds from the fundraising will be used to double processing capacity to 1.4 million barrels a day by 2028, a scale that would move the complex into the top tier of global refining capacity.
The expansion comes as global fuel markets realign and buyers seek alternative suppliers amid geopolitical disruptions.
Since commissioning, the refinery has supplied petrol, diesel, aviation fuel and other products to Nigeria and expanded exports across West Africa, helping to reduce the country’s fuel import bill and ease foreign‑exchange pressure.
