Dangote Petroleum Refinery & Petrochemicals FZE has reportedly raised nearly $2.5 billion through a private share placement as it prepares for what could become Africa’s largest initial public offering.
According to a Bloomberg report, the transaction values the Lagos-based refinery at approximately $40 billion, with investor demand reaching around $4 billion, exceeding the shares offered.
The fundraising was completed in phases, with regional institutional investors accounting for a significant portion of the final round.
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The development follows another successful financing exercise in which the refinery secured $750 million through a debt offering.
The refinery is expected to launch its IPO as early as August, subject to market conditions and regulatory approvals.
The public offering could raise between $1.5 billion and $2 billion, while being marketed to Nigerian, African and international retail investors.
Proceeds from the latest fundraising are expected to finance plans to double Dangote refinery’s processing capacity from 700,000 barrels per day to 1.4 million barrels per day by 2028.
Commissioned in 2023, the Dangote Petroleum Refinery has become a major supplier of petrol, diesel, aviation fuel and other refined petroleum products across Nigeria and several African markets.
The planned IPO would mark another milestone in the company’s expansion strategy and rank among the largest capital market transactions ever undertaken in Africa.
