Proposed 4.1bn share offer could raise about ₦2.15tn
The Dangote Petroleum Refinery and Petrochemicals FZE is set for what could become one of the biggest Initial Public Offerings in Nigeria’s capital market after the Securities and Exchange Commission approved the commencement of its IPO.
Under the proposed offer, the refinery will issue 4.1 billion ordinary shares at ₦525 per share, which could raise about ₦2.15tn if fully subscribed.
The SEC also registered the company’s existing 120.13 billion ordinary shares, according to an approval letter sent to the Lead Issuing House, Vetiva Advisory Services Limited.
The letter was signed by the Director of the Securities and Investment Services Department of the SEC, Abdulkadir Abbas.
The approval clears the refinery’s draft offer documents and allows the company to proceed with its Completion Board Meeting and Signing Ceremony, bringing the proposed public listing a significant step closer.
The development is expected to open up investment opportunities in one of Africa’s biggest industrial projects while giving investors an opportunity to take part in the ownership of the refinery through the Nigerian capital market.
Located in Ibeju-Lekki, Lagos, the Dangote Refinery sits on about 2,635 hectares and forms part of an integrated refining and petrochemicals complex.
The refinery currently has a capacity of 700,000 barrels per day, making it the world’s largest single-train refinery. It also has a polypropylene plant with a production capacity of 900,000 tonnes per annum and is powered by a dedicated 435-megawatt power plant.
At full production, the refinery is expected to meet a substantial portion of Nigeria’s demand for refined petroleum products, while also supplying international markets.
The facility is also being expanded, with the planned increase in capacity to 1.4 million barrels per day expected to further strengthen its position in the global refining industry.
Beyond its refining capacity, the complex has an integrated marine facility designed to support the movement of crude oil and refined products.
It also includes five Single Point Moorings, multiple quays capable of handling Panamax vessels and other cargo operations, as well as a large storage network.
The refinery’s storage facilities comprise 177 tanks with a combined capacity of 4.742 billion litres.
The SEC approval therefore marks more than another step in the refinery's development. It potentially marks the beginning of a new phase in which ordinary Nigerian investors and institutional investors can participate directly in one of the country’s most ambitious industrial projects.
If successfully completed, the Dangote Refinery IPO could rank among the largest capital-raising exercises ever undertaken in Nigeria and further deepen the country’s equity market.