The Dangote Petroleum Refinery has raised $2.5 billion through a private share placement, marking a major step toward what promises to become Africa’s largest initial public offering.
Devakumar Edwin, the group’s executive director, confirmed the fundraising on Friday, July 17.
The transaction, structured as a private placement rather than an IPO, saw the refinery sell approximately 6% of its equity to regional institutional investors .
Investor demand surged to nearly $4 billion, enabling the company to complete the offering in two successive tranches of $2 billion and $500 million .
Shares were priced at $0.35 each, with a minimum subscription of one million shares worth $350,000.
Investors cannot resell their holdings for 365 days. The private placement values the Lekki complex at approximately $40 billion .
The much-anticipated IPO remains on the horizon. Unlike the private offering, it will open to all investors, including retail buyers, through the Nigerian Exchange .
Managed by Stanbic IBTC Capital, Vetiva Capital Management, and FirstCap, the offering is expected to cover 5% to 10% of the refinery’s equity and raise an additional $1.5 billion to $2 billion .
Market sources suggest an August or September listing, with secondary listings being considered in Johannesburg, Nairobi, Accra, and Abidjan’s BRVM .
Analysts predict the listing will significantly reshape Nigeria’s capital market. Bismarck Rewane of Financial Derivatives Company estimates the NGX’s market capitalization could surge from N161 trillion to N236 trillion at listing, assuming fresh capital enters the market.
Nigeria’s pension fund industry, managing over $17 billion in assets, has been authorized to participate .
The world’s largest single-train refinery, processing 650,000 barrels daily, began production in 2024 after its 2023 commissioning.
The $20 billion facility has transformed Nigeria from a fuel importer to a regional exporter, with kerosene exports rising from 18,000 to 158,000 barrels per day between April 2024 and April 2026. The group aims to expand capacity to 1.4 million barrels per day by 2028.
