Dangote refinery signs IPO documents before landmark share sale

Dangote refinery on Monday signed ‌offering documents with advisers and other parties involved in its initial public offering, a key milestone on its path to Africa’s biggest-ever share sale.

The offering will run from September 14 to October 13, according to a presentation shown at a ceremony in Lagos, the country’s commercial capital.

The company plans to sell 4.1 billion ordinary shares at 525 naira each, potentially raising about 2.15 trillion naira ($1.63 billion) if fully subscribed.

In the event of over-subscription, the Dangote refinery and petrochemicals plant may issue up to 30% more shares than the base offer size, subject to regulatory approval, the presentation showed.

The listing will test investor appetite for one of Africa’s most ambitious industrial projects.

The ‌700,000-barrel-per-day refinery, built at a cost of about $20 billion on the outskirts of Lagos, has reshaped Nigeria’s fuel market and benefited from supply disruptions linked to the Iran war, exporting jet fuel across Africa and into Europe.

The plant is part of the sprawling business empire of Aliko Dangote, Africa’s richest man, who built his fortune in cement and also owns sugar and other businesses.

The IPO aims to raise funds for a planned doubling of the refinery’s capacity to 1.4 million barrels per day. The company has already secured a $400 million underwriting commitment.

Dangote told the signing ceremony he hoped the refinery would become the world’s largest single-train refinery by 2028.