Dangote Petroleum Refinery is on track for a planned October initial public offering (IPO) in Nigeria, a move that could make it one of the largest public offerings in Africa and give Nigerian investors an opportunity to own a stake in the rapidly expanding business.
The refinery’s Chief Executive Officer, David Bird, disclosed this in an interview with Reuters on Friday, saying preparations for the domestic listing remain on schedule.
According to Bird, the company’s immediate focus is on the Nigerian capital market, with an international listing unlikely for at least another three years.
He explained that the decision is intended to give the refinery time to establish a stronger track record of production and financial performance before approaching foreign investors.
“We really want to drive participation. The mandate of the IPO was to be the people’s IPO,” Bird said.
The $20 billion refinery, owned by Africa’s richest man, Aliko Dangote, has applied to Nigeria’s Securities and Exchange Commission for approval of the offering. A source familiar with the process told Reuters that the IPO could raise as much as $5 billion, although Bird declined to comment on the potential size of the offer or the refinery’s valuation.
The planned public offering follows a $2.5 billion private placement completed in July, which valued the refinery at approximately $40 billion.
The transaction, led by Africa Finance Corporation alongside strategic investors, reportedly attracted significant demand from institutional investors. Africa Finance Corporation said the placement was 3.7 times oversubscribed, reflecting strong interest from both African and international investors.
Bird said investor response during the refinery’s pre-marketing exercise and private placement had been encouraging, adding that preparations for the IPO were progressing as planned.
The decision to prioritise a Nigerian listing comes as the refinery continues to expand its presence in international energy markets.
Bird said the facility became Europe’s largest supplier of jet fuel in June and July as disruptions associated with the Iran war increased demand for alternative sources of refined petroleum products.
The refinery is also preparing for a major expansion that could more than double its current capacity.
According to Bird, Dangote Petroleum Refinery plans to increase its refining capacity from 650,000 barrels per day to 1.4 million barrels per day within three years.
The expansion is expected to be financed through a combination of funds raised from the IPO and additional debt. Bird said the cost would be substantially lower than the approximately $20 billion required to build the original refinery.
He argued that the facility has several advantages over comparable refining assets in the United States, including access to locally produced crude oil, strong demand from Nigeria and an integrated operating structure.
“Africa remains structurally short of refined fuels and petrochemicals, creating significant room for growth,” Bird said.
The refinery has already become an increasingly important part of Nigeria’s petroleum supply chain. It currently provides most of the country’s petrol and diesel requirements and supplies all of Nigeria’s jet fuel needs.
For Nigerian investors, the planned IPO could represent an opportunity to participate directly in one of the country’s most significant industrial projects.
Rather than immediately seeking an international listing, Dangote Petroleum Refinery wants to establish several years of consistent production and financial results before making that move. Bird believes that a stronger operating history could eventually improve the company’s credibility with international investors and support a stronger valuation.
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