Dangote Refinery IPO targets $5bn in record African market listing

Dangote Petroleum Refinery & Petrochemicals is preparing to raise $5 billion through an Initial Public Offering (IPO) expected to close by October 2026, in what could become the largest stock market listing in Africa’s history.

According to a Reuters report citing sources familiar with the transaction, the refinery has already submitted its IPO application to the Securities and Exchange Commission (SEC), with regulatory approval expected in the coming weeks and a prospectus likely to be released in September.

If approved, the public offering would mark a landmark transaction for Nigeria’s capital market, significantly boosting the size and liquidity of the Nigerian Exchange (NGX) while attracting substantial foreign and regional institutional investment.

The proposed listing follows the refinery’s successful $2.5 billion private placement, completed in July, which the company described as one of the largest corporate fundraising exercises ever undertaken by an African company.

According to the report, the private placement attracted subscriptions amounting to 3.7 times the initial offer size, resulting in the issuance of approximately $2.5 billion in new equity to support the continued expansion of the refinery and petrochemical complex.

Market interest in the planned IPO has extended beyond Nigeria, with stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda reportedly engaging advisers to the refinery on possible participation in the transaction.

One source told Reuters that Kenya’s capital market alone could contribute as much as $500 million towards the targeted $5 billion fundraising, driven largely by demand from pension funds and other institutional investors.

Although the IPO is targeting $5 billion, the final fundraising size will depend on regulatory approvals. The Nigerian Exchange is expected to serve as the primary listing venue.

The planned listing aligns with earlier indications that billionaire industrialist Aliko Dangote intends to list approximately 10 per cent of Dangote Petroleum Refinery & Petrochemicals as part of a broader strategy to finance the next phase of expansion across the group’s industrial operations.

The refinery, which is currently operating at full capacity, is targeting an expansion from its existing capacity to approximately 1.4 million barrels per day, positioning it among the world’s largest refining complexes.

Beyond Nigeria, the group is also advancing plans for a proposed $17 billion refinery project in Kenya, aimed at strengthening its footprint in East Africa’s energy market.

The listing also forms part of a broader capital market strategy across the Dangote Group. Dangote Cement is also expected to pursue a London Stock Exchange listing before the end of the year as the conglomerate seeks greater access to international capital markets.

Capital market analysts believe a successful $5 billion IPO would rank among the largest corporate listings globally this year and substantially deepen Nigeria’s equity market by increasing investable assets, improving market liquidity and attracting new categories of long-term institutional investors into the country’s capital market.