Dangote Petroleum Refinery and Petrochemicals FZE has opened its initial public offering, putting 4.1 billion ordinary shares up for subscription at 525 naira each. At full subscription, the base offer would raise 2.15 trillion naira, or about $1.6 billion at the exchange rate cited in Reuters reporting published by Gulf Times.
Nigeria’s Securities and Exchange Commission said it had approved the IPO. The regulator advised prospective investors to use only designated receiving agents, approved channels and platforms, and to read the approved prospectus.
A large offer with a small entry threshold
Subscriptions opened at 0800 local time in Lagos on Sept. 14 and are scheduled to close Oct. 13, according to Reuters. Investors can subscribe for as few as 10 shares, making the minimum investment 5,250 naira, or roughly $4 in contemporaneous reports.
The 4.1 billion shares offered at 525 naira each total 2.1525 trillion naira, generally reported as 2.15 trillion naira. Reuters said the shares represent about a 3% stake in the refinery. Reuters and the BBC characterized the transaction as Africa’s largest public share offering to date.
The SEC notice confirms the IPO’s opening and sets out investor-protection guidance, but does not specify the share count, offer price or projected proceeds. Reuters also reported that the company may issue additional shares through a greenshoe option if the offer is oversubscribed, potentially taking total proceeds to roughly $2.1 billion.
Proceeds are intended for expansion
The BBC reported that the proceeds are intended to help double the refinery’s capacity. Reuters, in reporting also carried by NTV Kenya, said the business aims to reach processing capacity of 1.4 million barrels a day by 2029.
The refinery began operations in 2024 after an investment of about $20 billion, Reuters reported. Public accounts differ on its current capacity: Reuters reports 700,000 barrels a day, while the BBC describes capacity at 650,000 barrels a day. Neither outlet explains whether the difference reflects nameplate design, actual processing rates or differing reporting dates.
Reuters reported that the refinery has benefited from supply disruptions associated with the Iran war, including European demand for jet fuel. That account describes market conditions at the time of the offering.
Public offer follows July private placement
Reuters reported that Dangote Petroleum Refinery raised $2.5 billion in July by selling a 6% stake to institutional investors. That transaction was reported to imply a valuation near $40 billion; the public offer was reported at a valuation closer to $47 billion to $49 billion.
A $2.5 billion sale for a 6% stake mechanically implies an equity valuation of about $41.7 billion, though the security structure and other terms limit direct comparability. Reuters cited refinery chief executive David Bird as saying institutional buyers accepted conditions including a lockup period, which contributed to a discounted price. The reports do not fully detail the methodologies behind the later public-offer valuation range.
Other published estimates underscore the uncertainty. The Guardian calculated an implied valuation of about 65.22 trillion naira, or $36.5 billion, if the offer were fully subscribed. The gap may reflect differences in exchange rates, assumed share counts, treatment of the stake being sold or valuation conventions, but the reports do not reconcile those differences. The SEC directs prospective investors to the approved prospectus.
The subscription period is scheduled to close Oct. 13. Any additional issuance through the greenshoe option is conditional on oversubscription.