Africa’s biggest refinery, the Dangote Refinery, is set to launch an initial public offering (IPO) that could raise about $5 billion.
The IPO is expected to open within the next 10 to 12 days, according to Aliko Dangote, President of Dangote Industries Limited.
Dangote disclosed the plan while speaking with investors and analysts in Botswana on Thursday, Reuters reported.
The proposed $5 billion fundraising could rank among the largest public offerings ever recorded in Africa.
The $20 billion refinery, located in Lagos, has become a major part of Nigeria’s efforts to expand domestic petroleum refining and reduce dependence on imported fuel.
Dangote said the IPO would support the group’s long-term expansion plans, including a major increase in the refinery’s capacity.
“Our dream is that we want to make sure we double the capacity of the refinery… which will take us to 1.4 million barrels per day. The IPO will open in the next 10 to 12 days,” he said.
The planned expansion would take the refinery’s capacity from its designed 650,000 barrels per day to about 1.4 million barrels per day.
The facility reached its full designed capacity of 650,000 barrels per day in February.
It has also conducted production tests at around 700,000 barrels per day, exceeding its original design capacity.
The refinery’s rising output has placed it at the centre of Nigeria’s energy security ambitions and efforts to strengthen local fuel supply.
Dangote’s IPO plan is part of a wider expansion strategy by the conglomerate.
He also disclosed that Dangote Cement is expected to secure a secondary listing on the London Stock Exchange, potentially in October.
The listing is expected to provide the cement business with access to more international investors and global capital markets.
Dangote further revealed plans to build a new refinery along Kenya’s coast in partnership with East African governments.
The proposed facility would supply petroleum products to Kenya and neighbouring countries, while reducing the region’s reliance on imported fuel.
Construction of the Kenyan refinery could take about three years.
If completed, it would represent one of Dangote Group’s biggest refining investments outside Nigeria.
The planned $5 billion IPO could provide additional funding for the refinery’s expansion while allowing investors to gain exposure to one of Africa’s largest industrial projects.
For Nigeria, a significant increase in refining capacity could strengthen the domestic energy value chain and reduce dependence on imported petroleum products.
Dangote’s latest plans underline the group’s ambition to expand its influence across Africa’s energy and industrial sectors.
With the proposed IPO, a potential doubling of refinery capacity and expansion into Kenya, the company is positioning its refining business for a bigger role in Africa’s energy market.
