The N2.15tn initial public offering of Dangote Petroleum Refinery and Petrochemicals will open for public subscription on Monday, September 14. The offer was formally launched in Lagos on Monday after Dangote Group President and Chief Executive Officer, Aliko Dangote, and the transaction’s advisers signed the relevant documents.
The company is offering 4.1 billion ordinary shares at N525 each, with a minimum subscription of 10 shares valued at N5,250. Dangote said the low entry point was designed to encourage broad participation from retail and institutional investors and increase public ownership of the refinery.
He said the offer was intended not only to raise capital but also to give Nigerians across different income groups an opportunity to own shares in the business. Dangote described the exercise as part of efforts to broaden participation in wealth creation and Africa’s industrial development.
Group Managing Director of Vetiva Advisory Services, the lead issuing house and coordinator of the transaction, Chuka Eseka, said the formal launch followed the recent approval granted by the Securities and Exchange Commission. Stakeholders have described the offer as a major development for Nigeria’s capital market, with expectations that it could become one of Africa’s largest retail investment drives.
The IPO places a valuation of nearly $50bn on Dangote Petroleum Refinery and Petrochemicals and is expected to support the expansion of the refinery’s production capacity from 700,000 barrels per day to 1.4 million barrels per day. Located on a 6,180-acre site in the Lekki Free Zone, the facility is described as the world’s largest single-train refinery.
The planned public offer follows a $2.5bn private placement completed in July for institutional investors and high-net-worth individuals, with demand reportedly exceeding the offer size by 270 per cent. Analysts believe some of the unmet demand from that exercise could translate into strong interest in the public offer, while the expected listing of the refinery on the Nigerian Exchange later this year could significantly increase the exchange’s market capitalisation.
Market experts said a successful IPO could set a new benchmark for large public offerings in Africa and encourage other major Nigerian companies to seek long-term funding through the capital market. The offer is also expected to benefit from renewed investor sentiment following Nigeria’s reinstatement to FTSE Russell’s Frontier Market status, which could support greater foreign portfolio participation.
