**Africa’s Largest Refinery Launches Historic Public Offering**
Lagos, Nigeria – The Dangote refinery, Africa's largest oil refinery, has officially launched a historic initial public offering (IPO) aimed at raising $1.6 billion to finance a major expansion of its capacity. This IPO is being touted as the largest in African history, with the company offering up to 4.1 billion shares priced at 525 naira each, according to the prospectus released by the company.
The IPO opened on Monday and is set to close on October 13, with trading on the Nigerian Exchange anticipated to commence in November. Investors can apply for a minimum of ten shares, which amounts to 5,250 naira (approximately $4).
At the launch event in Lagos, Aliko Dangote, the founder of the refinery, emphasized the inclusive nature of the offering, stating, “We are all going to fully share all our prosperity with the people, and that is why we call it the people’s IPO.”
The Dangote refinery, inaugurated in May 2023, has a capacity of 700,000 barrels per day and is a crucial component of Nigeria's strategy to enhance domestic refining capabilities and reduce reliance on imported fuel. The refinery's strategic importance is underscored by its role as the sole domestic fuel producer in a nation of over 200 million people, who collectively operate more than 5 million vehicles.
Andrey Maslov, director of the HSE University Center for African Studies, commented on the timing of the IPO, noting that the refinery's expected valuation is approximately double its construction cost, reflecting its success. He pointed out that the current environment of record refining margins and global fuel market volatility provides an advantageous backdrop for Dangote to raise capital while retaining a smaller stake in the company.
Maslov also highlighted the significance of the shares being listed on the Nigerian exchange, with capital raised in naira. He stated, “This speaks to the maturity of the domestic stock market, sets a strong precedent for other ventures, and proves that local capital markets can serve as a viable source of funding.”
The launch of the IPO has generated considerable interest, leading to a surge in traffic from retail investors. This influx briefly disrupted Nigerian investment platforms Bamboo and Cowrywise, which confirmed the technical difficulties experienced on Monday. The Nigerian Securities and Exchange Commission has approved the IPO but has cautioned investors to be wary of purchasing shares through unauthorized websites and social media channels.
According to the IPO documents, the Dangote refinery anticipates net proceeds of approximately 2.11 trillion naira after expenses. These funds will contribute to a broader $14.3 billion program aimed at doubling the refinery's capacity to 1.4 million barrels per day. This expansion will encompass enhancements to processing units, major equipment, utilities, and construction work, with completion targeted for 2030.
In the first quarter of 2026, the refinery reported sales of 5.35 million metric tons of petroleum products, with 42.5% of these exports reaching markets across Africa, Europe, Asia, and the Americas. This achievement comes amid global supply disruptions linked to geopolitical tensions, including the ongoing conflict between the US and Israel against Iran.
As of May 2023, the Dangote refinery was supplying approximately 87.6% of Nigeria’s gasoline market. In addition to the current expansion, Dangote has plans for a $17 billion energy complex in Lamu, Kenya, which will include another refinery with a capacity of 700,000 barrels per day.
The launch of this IPO marks a significant milestone not only for Dangote Industries but also for the Nigerian economy, as it seeks to bolster local production capabilities and create a more self-sufficient energy landscape.