Dangote Refinery Plans Africa's Biggest IPO to Raise Sh646bn

Dangote Petroleum Refinery is preparing Africa’s largest initial public offering, targeting about Sh646 billion, or five billion dollars. The listing is expected to conclude in October 2026.

The company has submitted its application to Nigeria’s Securities and Exchange Commission. Approval is anticipated in the coming weeks, with a prospectus due for publication in September. The primary listing will take place on the Nigerian Stock Exchange.

Funds raised will support expansion of the existing 650,000-barrel-per-day Lagos refinery. Aliko Dangote has previously stated an ambition to increase output to 1.4 million barrels per day. The capital will also assist plans for a similar facility on Kenya’s coast.

A recent private placement of a six percent stake valued the business at around 40 billion dollars. The Lagos plant itself cost approximately 20 billion dollars to build. Nigeria’s state oil firm NNPC holds just over seven percent.

Stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have held discussions with the refinery’s advisers in recent months. Kenya’s capital markets could account for as much as 500 million dollars of the overall target, according to sources familiar with the process. Local pension funds have shown strong interest.

No dual or cross-listing is planned at this stage. Investors in other African markets would participate through structured products such as global depositary receipts or exchange-traded instruments that mirror the Nigerian shares.

Dangote will offer investors the choice of payment in naira or dollars. Exact details on stake size, valuations and regional allocations remain under discussion and will depend on regulatory approval.

The timeline is described as tight. Sources close to the deal spoke on condition of anonymity because the process remains confidential. Dangote Group did not respond to requests for comment.

The Lagos refinery began operations in 2024 and reached full capacity earlier this year. It has already supplied significant volumes of jet fuel and other products across Africa and beyond.

The proposed Kenyan plant, previously confirmed for Lamu, forms part of the same broader strategy to expand refining capacity on the continent and reduce reliance on imported fuels. Whether a portion of the IPO proceeds will flow directly to that project has not been confirmed.

The offering is positioned as a pan-African opportunity, allowing capital markets across the region to invest in a major local industrial asset. Final terms will become clearer once the prospectus is issued and regulatory clearance is secured.