Dangote Petroleum Refinery is seeking to raise between $1.55 billion and $1.8 billion through its planned initial public offering, according to people familiar with the impending transaction.
The offering will involve the sale of 4.1 billion shares at between 500 naira ($0.38) and 595 naira ($0.45) per share. One source told Reuters that N525 ($0.40) per share was being considered as the likely offer price.
The order book for the offer is expected to open on September 14, marking a major step in the refinery’s planned listing on Nigeria’s capital market.
Dangote Refinery declined to comment on the proposed pricing and size of the offering.
The IPO plans have evolved from earlier expectations that the refinery could seek as much as $5 billion from public investors. Aliko Dangote said on Thursday that the offering would open within 10 to 12 days and that the refinery intended to eventually double its capacity to 1.4 million barrels per day.
The latest proposed share sale would represent a smaller capital raise than previously indicated, but would still rank among the largest IPOs in Africa.
The refinery has already raised $2.5 billion through a private placement, which was completed earlier this year. The transaction was reportedly 3.7 times oversubscribed and valued the refinery at about $39.1 billion.
The planned IPO follows the refinery’s move to full nameplate capacity of 650,000 barrels per day in February. The facility has also tested production at about 700,000 barrels per day.
Dangote has said proceeds from the broader capital-raising programme would support the refinery’s expansion, including plans to increase its processing capacity to 1.4 million barrels per day.
The IPO is expected to provide Nigerian investors with an opportunity to acquire stakes in one of Africa’s largest industrial assets while giving Dangote Refinery access to domestic capital markets.
The company has previously said the IPO is intended to encourage broad participation from Nigerian investors. Its chief executive, David Bird, said the company wanted the offering to become a “people’s IPO” and was not pursuing an overseas listing for at least three years.
The proposed listing comes as Nigeria seeks to deepen its domestic capital markets and attract greater private investment into large-scale infrastructure and industrial projects.
With the order book expected to open on September 14, investor interest will now depend on the final offer price, valuation and terms of the share sale.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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