Dangote Refinery to Sell Shares at ₦525 in Historic $1.6 Billion IPO

LAGOS, NIGERIA: Dangote Petroleum Refinery and Petrochemicals has received approval from Nigeria’s Securities and Exchange Commission (SEC) to proceed with an initial public offering that could become one of the largest share sales in Africa.

The refinery is set to offer 4.1 billion ordinary shares at ₦525 per share, which could raise approximately ₦2.15 trillion, or about $1.6 billion, if fully subscribed.

The offer is expected to open its order book on September 14, 2026, allowing investors to acquire shares in one of Africa’s most significant industrial projects.

SEC approves landmark share offering

The SEC’s approval marks a major step forward for the refinery’s transition from a privately held business to a publicly accessible investment opportunity.

The regulator has also registered the refinery’s existing 120.13 billion ordinary shares, putting the company’s implied valuation at approximately $47 billion, based on the approved share structure and reported calculations.

The development is particularly significant because the SEC had earlier warned investors against unauthorised advertisements and premature solicitation relating to a proposed Dangote Refinery share offering. In June, the regulator said no IPO application had been filed or approved at that time and warned the public against paying money for so-called pre-IPO allocations.

The latest approval means the offering has now moved into the formal public-offer process.

4.1 billion shares up for subscription

Investors are expected to be offered 4.1 billion shares at ₦525 each.

At that price, a full subscription would generate approximately ₦2.15 trillion for the refinery.

The offering could also include a 15% greenshoe option, allowing additional shares to be sold if demand exceeds the initial offer. This could enable the company to raise additional funds beyond the initial offer size.

The exact percentage of the refinery represented by the 4.1 billion shares has not been publicly specified in the reports currently available.

Why is Dangote raising the money?

The funds are expected to support the refinery’s ambitious expansion plans.

The facility currently has a nameplate processing capacity of approximately 650,000 barrels of crude oil per day, while management has been pursuing plans to increase capacity to about 1.4 million barrels per day.

If achieved, the expansion would significantly increase the refinery’s ability to supply refined petroleum products to Nigeria and export markets.

Aliko Dangote, founder and majority shareholder of the Dangote Group, has previously highlighted the expansion as part of the company’s long-term strategy for the refinery.

A major development for Nigeria’s capital market

The IPO is attracting significant attention because it could become Africa’s biggest-ever share offering.

It would also allow Nigerian retail and institutional investors to take a direct stake in the refinery rather than investing through other publicly listed Dangote-related companies.

The refinery is separate from companies such as Dangote Cement and Dangote Sugar Refinery, which are already listed on the Nigerian Exchange.

From $20 billion project to major energy player

Located in the Lekki Free Zone area of Lagos, the refinery was built at an estimated cost of about $20 billion and has become one of Nigeria’s most important energy infrastructure projects.

The facility has a processing capacity of 650,000 barrels per day and produces products including petrol, diesel, aviation fuel and other petroleum products.

The refinery has also expanded its export activities, with refined products reaching markets beyond Nigeria.

What investors need to know

The ₦525 price is the approved offer price, rather than the market price of an already-listed share. Investors will therefore be participating in the IPO process before any subsequent trading on the Nigerian Exchange.

Investors should rely on the official prospectus and information released by the SEC, the issuing houses and the Nigerian Exchange for final details on eligibility, application procedures, minimum subscription, payment arrangements, allotment and listing.

The SEC had previously warned Nigerians not to transfer money to individuals or platforms promising guaranteed allocations before regulatory approval.

A landmark moment for Dangote and Nigeria

For Aliko Dangote, the IPO represents another major milestone in the development of his flagship energy project.

For Nigeria, the proposed listing could deepen the country’s capital market, widen public participation in one of its largest industrial assets and potentially attract significant domestic and international investment.

With the order book expected to open on September 14, investor attention is now likely to shift toward the final prospectus and the process for subscribing to the shares.

If fully subscribed, the offering could raise about ₦2.15 trillion, making the Dangote Refinery IPO a landmark transaction for Nigeria and potentially the largest IPO ever conducted in Africa.