Aliko Dangote, Africa’s wealthiest man, has nearly finalized a $2.5 billion private share sale for the Dangote Petroleum Refinery, preceding what is expected to become the continent’s biggest initial public offering (IPO).
Insider sources familiar with the development have revealed that a stake of up to 6% in the refinery was sold at an overall company valuation of roughly $40 billion, signaling rising investor trust in Africa’s largest single-train facility.
The capital-raising drive reportedly drew massive interest from investors, pulling in around $4 billion in total demand and significantly outstripping the number of available shares.
The report, according to Punch stated that, “Aliko Dangote has nearly completed a $2.5bn private stock placement for his refinery business, according to people familiar with the matter, as the company prepares for Africa’s largest initial public offering.
Additionally, the report also indicates that the refinery’s upcoming public listing could bring in an additional $1.5 billion to $2 billion, with the IPO planned for as soon as August, depending on regulatory clearances and market stability.
This fresh capital is expected to bankroll major expansion efforts, with insiders noting that the proceeds will fund a capacity boost from 700,000 to 1.4 million barrels per day by 2028, positioning it as one of the biggest global refining hubs.
Meanwhile, this expansion comes as global energy markets continue to adjust to supply disruptions driven by geopolitical tensions, prompting many countries to seek alternative fuel sources.
The Dangote Refinery- Africa’s Largest Oil Refinery
Amid disruptions to conventional global supply lines, the Dangote facility has evolved into a vital provider of refined fuel products across the African continent.
Commissioned in 2023 following a lengthy construction period, the Dangote Petroleum Refinery stands as the largest single-train facility globally. It was designed to end Nigeria’s long-standing dependency on foreign fuel imports, despite the nation being Africa’s top crude oil producer.
Since launching commercial activities, the facility has supplied petrol, diesel, jet fuel, and other petroleum products to the local market while scaling up exports throughout West Africa and international destinations.
The anticipated IPO represents a major step in Dangote’s plan to broaden the refinery’s ownership structure, following a construction phase funded primarily by shareholder equity, bank financing, and debt market issuances.
Additionally, upon completion, the public listing is projected to rank as one of the largest capital market transactions in African history, potentially generating $1.5 billion to $2 billion in fresh equity while opening up ownership in a top industrial asset to retail and institutional investors.
Read Also: Dangote Refinery Boost Petrol Production, Hits 700,000 b/d
Backstory…
The refinery’s latest feat comes just days after it announced suspension of the sale of petrol otherwise known as premium motor spirit in Naira for gantry loading, setting the  price at $0.779, or approximately N1,075 per litre for PMS.
In a notice distributed to clients by the company’s Group Commercial Operations, the refinery announced that this dollar-based pricing would take effect on Monday.
Consequently, the refinery has pegged the ex-depot benchmark price of automotive gas oil at $1.087 per litre and aviation fuel at $0.942 per litre, while pricing coastal deliveries of PMS at $1,044.62 per metric tonne.
