The much-anticipated initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE opens for public subscription today, with the company offering 4.1 billion ordinary shares at N525 each. The N2.15tn offer has a minimum subscription of 10 shares, valued at N5,250, and will close on October 13, 2026.
The Securities and Exchange Commission has approved a 30 per cent oversubscription provision, allowing the company to allot up to an additional 1.23 billion shares worth about N645.75bn if demand exceeds the initial offer. Dangote Group President and Chief Executive Officer, Aliko Dangote, said the low minimum subscription was designed to encourage broad participation by retail and institutional investors.
The offer places the refinery and petrochemicals business at a valuation of close to $50bn and is expected to provide additional equity capital for its expansion programme. The company plans to increase refining capacity from about 700,000 barrels per day to 1.4 million barrels per day at its 6,180-acre facility in the Lekki Free Zone.
Dangote said the expansion would also increase polypropylene production from about 900,000 metric tonnes to 2.4 million metric tonnes annually, alongside higher output of linear alkylbenzene and base oils. He said the project would eventually produce Euro VI fuels, expand power generation to 1,000 megawatts and maintain a workforce comprising more than 85 per cent Nigerians.
The company said the expansion would be financed through a combination of cash flow, the public listing and strategic investors. Dangote also estimated that annual revenue could exceed $55bn when the expansion is completed, while the project is expected to strengthen domestic energy security, reduce foreign exchange outflows and lower dependence on imported refined petroleum products.
Investor interest in the refinery has already been demonstrated by a $2.5bn private placement conducted in July for institutional investors and high-net-worth individuals. Demand reportedly exceeded the amount offered by 270 per cent, raising expectations that some of the unmet demand could move into the public offer. Analysts also expect a potential listing on the Nigerian Exchange later this year to significantly increase the exchange’s market capitalisation.
Dangote said the company’s main listing would be in Nigeria as part of efforts to broaden ownership and make the refinery a major national asset. The offer comes after Nigeria’s reinstatement to Frontier Market status by FTSE Russell, which is expected to support international investor participation, while the refinery’s planned expansion is intended to position Nigeria as a major regional hub for refined petroleum products and petrochemicals.
