Dangote Petroleum Refinery is preparing an initial public offering expected to raise about $1.6 billion, in what could become one of Nigeria’s largest stock market launches.
The Lagos-based refinery, owned by Africa’s richest man, Aliko Dangote, plans to offer 4.1 billion ordinary shares at 525 naira each. If fully subscribed, the sale could raise about 2.15 trillion naira ($1.6 billion). Nigeria’s Securities and Exchange Commission has approved the offer, with the listing expected on 14 September.
The company says the funds will support plans to double refining capacity from 650,000 barrels a day to 1.4 million barrels a day. That expansion would make the plant the world’s largest refinery, overtaking India’s Jamnagar complex.
In July, the refinery raised $2.5 billion from private investors to support its growth. Dangote is also planning a 700,000-barrel-per-day refinery in Lamu, on Kenya’s coast. Groundbreaking for that project is scheduled for 30 September.
Dangote has said the company wants to reduce Africa’s dependence on imported refined fuel and strengthen the continent’s energy security. Africa currently imports more than 70 percent of its refined petroleum products.
Nigeria is Africa’s largest crude oil producer. The company described the IPO as one of the largest capital market transactions in the country’s history.
