Dangote Nears $2.5 Billion Refinery Share Sale Ahead of Africa’s Biggest IPO | Aliko Dangote is close to completing a $2.5 billion private placement for Dangote Petroleum Refinery & Petrochemicals FZE, a move that could pave the way for Africa’s biggest initial public offering (IPO).
According to people familiar with the transaction, the president of Dangote Group sold a stake of up to 6 percent in the refinery. The deal values the company at approximately $40 billion, reflecting strong investor confidence in the business.
The refinery, located on the outskirts of Lagos, has a 650,000-barrel-per-day processing capacity, making it the world’s largest single-train refinery.
Investor demand has remained strong throughout the fundraising exercise. Sources said the private placement became oversubscribed within weeks of opening, exceeding initial expectations.
Among the confirmed investors is FirstHoldCo Chairman Femi Otedola, who committed $100 million to the deal. Otedola disclosed that he sold his entire stake in Geregu Power Plc to finance the investment.
Meanwhile, Nigeria’s pension regulator approved retirement funds to participate in the fundraising for the first time. The decision opened access to pension assets worth more than $17 billion, significantly expanding the pool of potential investors beyond high-net-worth individuals and institutional investors.
The fundraising also surpassed Dangote’s earlier target. In May, he indicated plans to raise about $2 billion through the private placement. However, the final amount is expected to reach $2.5 billion, highlighting growing confidence in the refinery’s long-term prospects.
Furthermore, the implied $40 billion valuation is almost double the estimates some analysts assigned to the refinery late last year. The sharp increase reflects optimism about the facility’s commercial potential and its role in transforming Africa’s downstream oil industry.
Investors will get a rare opportunity to invest in one of Africa’s largest energy assets when the company lists on the Nigerian Exchange as early as September. In addition, Dangote has indicated that the offering could include a cross-border component to attract investors from other African markets rather than relying solely on domestic participation.
Although the identities of most investors remain undisclosed, the scale of the fundraising and the strong demand suggest the refinery has become one of the continent’s most attractive investment opportunities. If completed as expected, the listing would rank among the largest capital market transactions in Africa’s history.
Dangote Nears $2.5 Billion Refinery Share Sale Ahead of Africa’s Biggest IPO | AviationGhana
