Africa’s largest refinery, owned by billionaire Aliko Dangote, is extending its initial public offering (IPO) by 10 days to give investors across the continent more time to participate in what is expected to be Africa’s largest-ever share sale.
- Africa’s largest-ever IPO, Dangote’s $20 billion Nigerian oil refinery, is extending its offering by 10 days to attract more investors across the continent.
- The share sale aims to raise $2.1 billion for expanding the refinery, with demand so strong that significant portions are offered to investors beyond Nigeria, especially in East Africa.
- Uganda, Kenya, and Botswana have opened their markets to the IPO, making it accessible to millions of retail investors across Africa.
- If fully subscribed, the IPO could value Dangote’s refinery at nearly $50 billion, making it a landmark event in African capital markets.
The IPO, launched on September 14 and initially scheduled to close on October 13, aims to raise as much as $2.1 billion to fund the refinery’s expansion. The additional time is intended to widen access to the offering beyond Nigeria as Dangote seeks to attract investors from other markets across the continent.
“The issuer has received very strong interest from a broad range of eligible investors across Africa and other jurisdictions,” Dangote said.
Chief Executive Officer David Bird said the extension would help the company offer the investment opportunity to more African investors.
Dangote Refinery IPO attracts investors across Africa
The Dangote Refinery IPO aims to broaden ownership of the $20 billion facility, which has a processing capacity of 700,000 barrels per day, by attracting up to 10 million retail investors in Nigeria and across Africa.
The company is looking to make a significant portion of the offering accessible to investors outside Nigeria, with exchanges and regulators across the continent exploring ways to facilitate participation.
Business Insider Africa reported that nearly 20% of the IPO was being made available to investors in East Africa. The allocation could be worth up to $300.4 million if fully subscribed, according to Bloomberg.
Uganda has also opened its market to the offering after its Capital Markets Authority approved the promotion and distribution of the refinery’s securities to local investors. Global depositary receipts have already been made available to investors in Kenya and Botswana.
The offering could value the refinery at close to $50 billion, making it one of the most significant listings in African capital markets.
$2.1 billion IPO to fund refinery expansion
Dangote Industries launched the share sale to raise capital for an ambitious expansion that would increase the refinery’s processing capacity from 700,000 barrels per day to 1.4 million barrels per day by 2029.
The expansion would position the Nigerian facility to become the world’s largest refinery by capacity, according to the company’s plans.
With strong investor interest and a broader regional reach, the offering could become a significant test of demand for large African corporate listings beyond traditional domestic markets.