DANGOTE REFINERY RAISES $2.5 BILLION AND THE IPO IS COMING
Dangote Petroleum Refinery has raised $2.5 billion through a private placement. The money will help fund expansion as the refinery ramps up operations.
The 650,000-barrel-per-day refinery started production in 2024. It now produces diesel, jet fuel, naphtha and petrol. Nigeria no longer depends on imported fuel the way it used to.
The private placement offered 3 billion shares at $0.35 each. Investors had to buy at least 1 million shares, worth $350,000. The shares have a one-year lock-up period. Demand was strong, with subscriptions exceeding $2 billion even before the offer closed.
The refinery is now valued at about $40 billion. An initial public offering is expected as early as August. It could raise an additional $1.5 to $2 billion and would be the biggest IPO in African history. The listing is planned on the Nigerian Exchange.
Aliko Dangote’s company executive confirmed the raise on Friday. Nigerian pension funds have been cleared to participate for the first time. A $17 billion pool of retirement savings could now flow into the listing.
The refinery also recently raised $750 million through a bond issue with a 7.5 percent coupon. JPMorgan, Bank of America and Standard Chartered arranged the deal.
Dangote is also planning a refinery in Kenya worth up to $17 billion. It would process up to 700,000 barrels per day and become East Africa’s largest refinery.
Africa’s biggest industrial project is now moving into the public markets.