Aliko Dangote is nearing the completion of a $2.5 billion private share placement for his refinery business, marking a major step toward what could become Africa’s largest initial public offering (IPO).
- Aliko Dangote is close to completing a $2.5 billion private share placement for his refinery, valuing it at about $40 billion.
- The private offering attracted around $4 billion in investor demand, with support mainly from regional institutional investors.
- An IPO could follow as early as August, aiming to raise an additional $1.5 to $2 billion through a public listing on the Nigerian Exchange.
- The refinery, which began production in 2024, plans to boost its capacity from 650,000 to 1.4 million barrels per day by 2028
Aliko Dangote is nearing the completion of a $2.5 billion private share placement for his refinery business, marking a major step toward what could become Africa’s largest initial public offering (IPO).
According to people familiar with the transaction, the fundraising values Dangote Petroleum Refinery & Petrochemicals at approximately $40 billion, Bloomberg reported.
The private placement reportedly attracted around $4 billion in investor demand, with an initial $2 billion share sale followed by an additional $500 million, largely backed by regional institutional investors.
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A record-breaking IPO in sight
The fundraising comes ahead of a planned IPO that could raise an additional $1.5 billion to $2 billion, with a public listing expected as early as August.
Business Insider Africa previously reported that Dangote intends to list the refinery on the Nigerian Exchange as part of a broader effort to deepen local participation in one of Africa’s most strategic industrial assets. The billionaire has consistently advocated for greater African ownership of major infrastructure projects, a strategy reflected in the strong participation of regional investors during the private placement.
The refinery also recently secured $750 million through a debt offering, further strengthening its capital base.
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Expanding Africa’s largest refinery
The 650,000 barrels-per-day refinery, which began production in 2024, has expanded output across diesel, aviation fuel, naphtha and petrol, significantly reducing Nigeria’s reliance on imported refined petroleum products.
The latest fundraising will help finance an ambitious expansion that aims to more than double the refinery’s processing capacity to 1.4 million barrels per day by 2028, positioning it among the world’s largest refining complexes.
Dangote is also considering building a refinery in Kenya worth between $15 billion and $17 billion as part of efforts to reduce Africa’s reliance on imported petroleum products. The proposed facility, with an estimated processing capacity of up to 700,000 barrels of crude oil per day, would become the largest refinery in East Africa if completed.
Beyond refining, the group is also exploring a deep-sea port in Nigeria, expansion of fertiliser output to 12 million tons annually by 2030, diversification into liquefied gas, and development of a 20,000-megawatt power plant.
