The initial public offering of Dangote Petroleum Refinery, which could raise about $5 billion and become Africa’s largest IPO, will open within the next 10 to 12 days, billionaire businessman Aliko Dangote has said.
Dangote disclosed the timeline on Thursday while speaking with investors and analysts in Botswana, Reuters reported.
The planned listing comes as the Dangote Group pushes ahead with plans to double its production capacity from 650,000 barrels per day to 1.4 million barrels per day.
“So our dream is that we want to make sure we double the capacity of the refinery … which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” Dangote reportedly told investors and analysts.
The refinery reached its full nameplate capacity of 650,000 barrels per day in February and has already tested production at 700,000 barrels per day.
The planned IPO could also significantly reshape Nigeria’s stock market.
READ ALSO:
- Dangote Refinery to Launch IPO in September as Investor Demands Hit $2bn
- Dangote Refinery Targets October for Historic $5bn IPO to Finance Expansion
- Ahead of IPO, Dangote Refinery Raises $750m in Eurobond Debut
- More Money for States, but Nigerians Still Struggle – BudgIT
- MCB Backs Tolaram with $51m Refinancing for Guinness Nigeria Deal
Pinnacle Daily earlier reported that Bismarck Rewane, managing director of Financial Derivatives Company, projected that listing the Dangote Refinery could raise the Nigerian Exchange’s market capitalisation from N161 trillion to N236 trillion if the offering brings fresh capital into the market.
“In a ‘pure addition’ world, the NGX would jump from N161 trillion to N236 trillion at listing, and the ASI would re-rate proportionately,” Rewane was quoted to have said.
He estimated that the refinery’s targeted valuation of $50 billion could add between N60 trillion and N75 trillion to the Nigerian stock market.
The refinery’s planned IPO is expected to seek about $5 billion, potentially making it the largest public offering on the African continent.
The refining industry has also benefited from stronger profits as turmoil in the Middle East increased demand for alternative fuel supplies.
Beyond the refinery listing, Dangote said a secondary listing of Dangote Cement on the London Stock Exchange was most likely to take place in October.
The planned London listing could give the cement company broader access to international investors and capital.
Dangote also disclosed plans to expand the group’s refining business outside Nigeria through a proposed refinery project on Kenya’s coast.
The project is being planned in partnership with East African governments and is expected to take up to three years to complete.
It would supply refined petroleum products to Kenya and neighbouring countries, helping to reduce East Africa’s dependence on imported fuel.
Dangote said the project would be the group’s biggest refining investment outside Nigeria.
“We are launching it on September 30,” he said.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X